Facebook Blogging

Edward Hugh has a lively and enjoyable Facebook community where he publishes frequent breaking news economics links and short updates. If you would like to receive these updates on a regular basis and join the debate please invite Edward as a friend by clicking the Facebook link at the top of the right sidebar.

Thursday, August 28, 2008

South Africa Producer Price Inflation Highest In 22 Years

The cost of goods leaving South African factories and mines rose at the fastest pace in 22 years in July, pushed up by surging fuel and electricity prices. Producer-price inflation accelerated to 18.9 percent from 16.8 percent in June, according to the latest data from the Pretoria-based Statistics South Africa. Month on month, prices rose 2.7 percent.

Factory-gate inflation has now exceeded 10 percent for seven months, adding to pressure on consumer prices as retailers pass on higher costs. Consumer inflation accelerated to 13 percent in July, the fastest pace since the government began compiling the data in 1998, the statistics agency said yesterday.

The central bank raised its benchmark interest rate by half a percentage point to 12 percent on June 12, the sixth increase in less than a year. The bank's monetary policy committee kept rates on hold at the conclusion of its last meeting on Aug. 14 after the oil price declined and economic growth slowed.

Prices of imported goods used in manufacturing rose an annual 22.8 percent in June, down from 24.6 percent in the previous month, the statistics office said.

No comments: