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SA factory prices go up

SA factory prices go up

Final manufactured goods prices for June 2020 increased 0,5 percent compared to the previous year, according to the latest Stats SA data.

The annual change in May was 0,4 percent.

Month-on-month, the change in factory gate prices was 0,5 percent between June and May.

Investec economist Lara Hodes noted that the print was attributable to smaller negative contributions from coke, petroleum, chemical, rubber and plastic products ‚ÄĒ which hold the second largest weighting in the producer inflation basket.

‚ÄúSpecifically, this grouping in which fuel price dynamics are captured, detracted -2 percent from the topline PPI reading in June compared to -2,3 percent in May.‚ÄĚ

In June the petrol price was increased by R1,18/l, which slowed the rate of petrol price deflation, Hodes said.

Source | Fin24.