South Africa’s PPI Drops to 4.6% in May, Down from 5.1% in April

  • Producer Price Index (PPI) in South Africa fell to 4.6% in May, down from 5.1% in April.
  • This decline reflects easing inflationary pressures in the manufacturing sector.
  • Economists attribute the drop to lower fuel prices and stable exchange rates.

South Africa’s annual producer price inflation (PPI) for final manufactured goods fell to 4.6% in May 2024. This is a decline from 5.1% in April 2024. The month-on-month increase for the PPI was a mere 0.1%.

The main contributors to the annual PPI inflation rate were:

  • Coke, petroleum, chemical, rubber, and plastic products (up 7.3%, contributing 1.7 percentage points)
  • Food products, beverages, and tobacco products (up 3.8%, contributing 1.1 percentage points)
  • Metals, machinery, equipment, and computing equipment (up 5.5%, contributing 0.8 percentage points)

For the monthly increase, the positive contributors were:

  • Coke, petroleum, chemical, rubber, and plastic products (up 0.8%, contributing 0.2 percentage points)
  • Food products, beverages, and tobacco products (up 0.8%, contributing 0.2 percentage points)
  • Electrical machinery and communication and metering equipment (up 3.4%, contributing 0.1 percentage points)

The transport equipment sector was a negative contributor, decreasing by 4.5% and contributing -0.4 percentage points.

Intermediate Manufactured Goods

The PPI for intermediate manufactured goods saw an annual increase of 0.4% in May 2024, down from 1.8% in April 2024. The index rose by 0.6% month-on-month.

The main positive annual contributor was chemicals, rubber, and plastic products, adding 1.3 percentage points. This sector also drove the monthly increase, contributing 0.7 percentage points.

Electricity and Water

The PPI for electricity and water showed a significant annual increase of 12.1% in May 2024, compared to 14.4% in April 2024. The monthly increase was 1.7%.

Electricity was the major contributor, with 10.8 percentage points annually and 1.8 percentage points monthly. Water added 1.4 percentage points to the annual rate.


The mining sector’s PPI experienced an annual decrease of 6.4% in May 2024, worsening from a 5.5% decline in April 2024. The index fell by 0.8% month-on-month.

Non-ferrous metal ores were the main negative contributor, subtracting 10.6 percentage points annually. Coal and gas contributed to the monthly decline with -0.8 percentage points.

Agriculture, Forestry, and Fishing

The PPI for agriculture, forestry, and fishing recorded an annual increase of 8.6% in May 2024, down from 9.7% in April 2024. The sector saw a monthly decrease of 1.3%.

Agriculture was the primary annual contributor with 8.5 percentage points. However, it also led the monthly decline, subtracting 1.1 percentage points.

Key Figures

ProductWeightIndex (Dec 2023=100)% Change Apr 2024% Change May 2023
Final manufactured goods100102.30.14.6
Intermediate manufactured goods100104.60.60.4
Electricity and water100106.81.712.1
Agriculture, forestry, fishing10097.4-1.38.6

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