THE annual percentage change in the producer price index (PPI) for final manufactured goods quickened to 7.7% year-on-year last month from 7% y/y in January‚ Statistics SA figures showed yesterday.
From January to February‚ the PPI for final manufactured goods increased by 1.3%. It was expected to have come in at 7.2% y/y in February‚ a survey by BDlive found. Forecasts from six economists ranged from 7% y/y to 7.5%.
Jana van Deventer‚ economist at ETM Analytics‚ said the figure fostered some renewed anxiety about the Consumer Price Index trajectory‚ suggesting the lag effects of the weaker rand were starting to become visible.
Busisiwe Radebe‚ economist at Nedbank‚ said: “We believe the PPI will remain elevated in the coming months‚ with the rand still the biggest threat to producer prices.”
Chris Hart‚ chief economist at Investment Solutions‚ said the Reserve Bank needed to hike rates now. – BDlive