South African PPI Inflation Slows In May; Trails Expectations

(RTTNews) - South African producer prices rose less-than-expected in May, a report from Statistics South Africa showed Thursday.

Producer prices rose 8.7 percent year-on-year in May, which was less than the 9 percent increase expected by economists. That followed a faster 8.8 percent rise in April.

Prices of food, tobacco and non-alcoholic beverages contributed most, adding 2.9 percentage points to the annual price rise and increasing 7.8 percent over the year.

Coke, petroleum, chemical, rubber and plastic products prices increased 11.3 percent and added 1.9 percentage points to producer prices growth.

Among different industry groups, producer prices in the intermediate goods sector rose 9.8 percent, slower than April's 10.2 percent gain. Utility sector prices climbed 9.7 percent, also weaker than April's 10.4 percent increase.

Mining sector producer prices moved up 4.9 percent, the pace of increase slowing from 6.6 percent in the previous month.

On a month-over-month basis, producer prices rose 0.2 percent, less than the consensus estimate for a 0.6 percent increase.