Resources: Producer Prices Ease on Stronger Rand
Recent Gauteng Business News
PRICES at the country’s factories, farms and other producers fell 4% last month compared with August last year Â— the fourth fall in a row.
A stronger rand was the main driver of the drop as it contributed to a reduction in imported factory input costs.
The year-on-year drop compared with a 3,8% decline in July. Statistics SA said this week that on a monthly basis, the producer price index (PPI) fell to 0,3% compared with 2,9% in July, indicating a slowing in the pace of the fall in prices.
The slowing pace could also signal that PPI is bottoming out and that prices will start increasing at a faster pace.
The rand has strengthened by about 27% against the dollar this year, reducing import costs and easing pressure on consumer- price inflation, which slowed to a 29-month low of 6,4% last month...
The full article can be found at BusinessDay.co.za
Business News Sector Tags: Resources|