South Africa's Producer Inflation Drops to 2.2% in January

In January 2026, South Africa's annual producer price inflation for final manufactured goods slowed to 2.2%, a decline from 2.9% recorded in December 2025, according to data released by Statistics South Africa. This decrease reflects moderated price growth, suggesting that consumer-related goods continue to exert upward pressure on annual inflation.

The overall monthly cost pressures eased, aided by a fall in petroleum and chemical product prices. However, the annual producer price index (PPI) for intermediate manufactured goods increased to 10.5% in January from 10.1% in December, with a monthly index climb of 2.6%, indicating sustained cost pressures within the product supply chain.

Input costs, particularly for metals, remain elevated, even as inflation for final goods moderates. The annual PPI for agriculture, forestry, and fishery products remained negative, with the index falling further to -5.8% in January from -5.0% in December, reflecting a decline of 2.0% month-on-month.