By Thebe Mabanga
The Producer Price Index (PPI) for final manufactured goods moderated to 7,5% in June from 7,8% in May, Statistics South Africa said on Thursday.
The index, which measures changes in the prices of locally produced goods as they leave the production process, declined by 0,1% month on month.
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Producer prices can provide an indication of inflationary pressures in the production pipeline, although they do not necessarily predict changes in consumer inflation.
The main contributor to the annual increase was coke, petroleum, chemical, rubber and plastic products, which rose by 22,0% and contributed 4,7 percentage points to the overall figure.
Paper and printed products increased by 8,5% and contributed 0,7 of a percentage point, while metals, machinery, equipment and computing equipment rose by 3,2% and contributed 0,5 of a percentage point.
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