The producer price index rose year-on-year to 5.1 percent last month, up from 4.5 percent in November 2005, Statistics SA said on Thursday. The increase is likely to result in interest rates remaining steady during 2006.

"This rate is 0.6 of a percentage point higher than the corresponding annual rate of 4.5 percent at November 2005," it said in a media statement.

The higher annual rate for December compared to November 2005 could be explained by annual hikes in production price indices for mining and quarrying products, agricultural products, chemicals and chemical products, and non-electrical machinery and equipment.

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SA's official statistics body produces a number of key indicators, including monthly inflation and quarterly GDP figures, unemployment and population counts.

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