Imported inflationary pressure is on

THE PRODUCER price index (PPI) on a year-on-year (y/y) basis dropped back to 8.9% in March, from its 9.1% rating in February.
And most of the price increases filtering into the PPI, according to the Standard Bank's economics division, were due to imported inflationary pressure. SA producers however, have kept local raw material prices in check, they added.
Imported PPI rose by 12.3% y/y in March compared to 12.4% in February.
"Although imported prices appear to be declining," said the bank, "this is mainly due to base effects.
"On a monthly (m/m) basis, imported PPI rose by 0.9% in March after falling by 0.3% in February."
However, PPI for locally produced commodities grew by 7.5% y/y in March from 7.7% in February.
"Importantly," said the bank, "monthly price pressures are significantly reduced. "