FX.co ★ South Africa PPI Inflation Hits 4-Month High of 0.6%

In June 2025, South Africa experienced an increase in Producer Price Index (PPI) inflation, which rose to 0.6%, marking the highest rate observed in four months. This is a significant rise from the 0.1% recorded in May. The most substantial positive influence on the annual PPI inflation rate came from the food, beverages, and tobacco products sector, which saw a 4% increase compared to 3.7% in the previous month, contributing 1.2 percentage points to the overall figure. In contrast, there were price declines in other sectors, including coke, petroleum, chemicals, rubber, and plastic products, which fell by 4.7% compared to a 6.4% drop previously; paper and printed products saw a decline of 2.6% versus a 2.9% decrease earlier; and there was a 1.9% reduction in prices for electrical machinery, communication, and metering equipment compared to a 1.3% fall previously. On a month-over-month basis, there was a 0.2% rise in producer prices, reversing a 0.3% decline from May.