FX.co ★ South Africa Producer Inflation Below Forecasts at 1%

In February 2025, South Africa experienced a slight decrease in producer price inflation, edging down to 1% from January's figure of 1.1%, contrary to market predictions of 1.3%. There was a modest deceleration in the price increase for several categories, including food products, beverages, and tobacco, which eased to 4.2% from 4.4% in January. The inflation rate for metals, machinery, equipment, and computing equipment also fell from 1.4% to 1.2%. Prices for non-metallic mineral products decreased further, dropping to -1.6% from 1.7%, while the rate for electrical machinery and communication and metering equipment lessened from 5.1% to 3.7%. Similarly, the reduction continued for paper and printed products, which saw a decline from -3.1% to -2.8%, and for coke, petroleum, chemical, rubber, and plastic products, which remained unchanged at -1.8%. On a monthly comparison, producer prices increased by 0.4% in February, following a 0.5% rise observed in the previous month, and falling short of the anticipated 0.7% growth.