The producer price index, or PPI, is the cost of a
‘shopping basket’ of goods of a typical South African producer of commodities.
Where
the CPI and CPIX is used to measure the inflation experienced by households,
the PPI is used to measure the inflation
of prices that are experienced by the producers of commodities.
The
PPI measures changes in prices in the early stages of production, before those
price changes have had a chance to filter through to households. Because of
this, the PPI is a useful tool to predict changes in the prices of consumer
goods and services (which effect CPI and CPIX) in advance.
The
PPI inflation rate is thus seen as an early indicator for coming changes in the
CPI and CPIX inflation rates.
- Actual: 7.2% y/y; -0.1% m/m
- Expected: 8.0% y/y; 0.6% m/m
- Previous: 8.3% y/y; 0.9% m/m
The y/y
growth in PPI came in below expectations, easing to 7.2% y/y in March from 8.3%
in February due to a stronger rand and softer commodity prices in March.
Read more:
Standard Bank Research
http://liberta.co.za/blog/what-is-inflation/
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