Producer inflation rises to 6.5% in April on higher fuel prices

The annual rate of producer price inflation for final manufactured goods rose to 6.5% in April, up from 6.2% in March, according to Stats SA.

This was above the expectations of most economists. Ahead of the announcement, NKC African Economics projected a year-on-year increase of 6%.

The main contributor to the increase was higher fuel prices. The price of petrol rose by 12.5% in the past year to April, while diesel cost 15.9% more.

The government has not yet announced changes in fuel prices for June, but according to the AA the introduction of the carbon tax will likely cancel out any drop in the price of petrol.