ECONOMY
PPI rise higher than forecast
Posted Fri, 30 Jun 2006
The annual percentage change in the production price index for May rose by 0.4 percent for April to 5.9 percent, Statistics South Africa said on Thursday. The PPI for all commodities for South African consumption showed an annual rate of change of 5.9 percent compared to the PPI for May 2005. This is 0.4 of a percentage point higher than the 5.5 percent for April. This higher annual rate could be explained by increases in the annual rates of change in the production price indices for agricultural products, which rose at the rate of 17.3 percent, up from 15.5 percent in April 2006 and petroleum and coal, which rose at the rate of 17 percent; up from 15.1 percent.
Electrical machinery and apparatus rose to 15.5 percent, up from 11.4 percent while beverages increased to 10.7 percent, up from 6 percent.
These increases were partly offset by decreases in the annual rates of change for mining and quarrying products, of which the rate decreased to 17.7
percent, down from 22.2 percent in April.
Stats SA said the annual increases in price indices for locally produced commodities rose by 4.7 percentage points, and for imported commodities by 1.2 percentage points. The annual percentage change in the PPI for locally produced commodities for consumption in South Africa was higher at 6.3 percent for May 2006, compared to May 2005. The annual rate of change in PPI for imported commodities was lower at 4.7 percent in May, compared to May of last year. Changes in production prices lead consumer prices by a few months.
Sapa
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