Producer inflation up year-on-year

Headline producer inflation accelerated to 4.2% y/y in August (July: 3.6%). The main driver of the increase was the ‘coke, petroleum, chemical, rubber and plastic products’ category, which added 1,8 percentage points. Producer inflation is expected to remain below 6% for the remainder of the year, but to tick up marginally from current levels on the back of higher food prices. – Nedbank Group Economic Unit