Inflation slows but power hikes loom

SOUTH Africa’s headline producer inflation slowed to 8.1% year on year in June from 8.7% in May, Stats SA said. On a month-on-month basis, prices rose by 0.3% from 0.2% against market expectations for 0.5%. GROWTH in credit demand from the private sector quickened to 8.69% year on year in June from 8.34% in May, Reserve Bank data showed. The broadly defined M3 measure of money supply was at 7.24%, from 7.59%. PULP and paper maker Sappi posted a return to third-quarter profit as cost cuts in its European business offset weak paper prices. Diluted headline earnings totalled 9 US cents per share from a loss of 9c a year earlier. THE trade deficit narrowed more than expected to R190-million in June from a revised R7.44-billion shortfall in May, data from the SA Revenue Service showed. Exports rose by 3.7%, while imports decreased by 5.1%. KUMBA Iron Ore agreed to a three-year wage deal with its two main unions — the National Union of Mineworkers and Solidarity — raising remuneration for the lowest-paid workers as much as 10% annually. SOUTH Africans may see a hike in electricity tariffs next year of two to five percentage points above the 8% increases they already face after the national energy regulator granted Eskom a partial recovery of costs. THE unemployment rate rose to 25.5% of the labour force in the second quarter from 25.2% in the first, Stats SA’s quarterly labour force survey showed. This amounted to 5.154 million people without work. SOUTH Africa’s budget deficit in the first three months of the 2014-15 financial year was R34.8-billion compared with a R33.4-billion gap over the same period the previous year, Treasury data showed. SIBANYE Gold said first-half profit dropped 36% on the lower gold price and an impairment on its investment in Africa’s biggest refinery. However, it kept investors placated with a dividend of 50c. NEW vehicle sales fell 1.5% year on year to 57 670 units in July, data from the National Association of Automobile Manufacturers showed. Export sales fell 16.1% year on year to 22 773 units.