Producer price inflation in South Africa eased to 7.5% in June, down from a 7.8% spike in the previous month, according to data reported by Business Day.
Despite the monthly cooling, the annual rate remains elevated at 22%, signaling persistent cost pressures within the manufacturing sector.
The deceleration in monthly inflation offers a slight reprieve, but the underlying drivers remain entrenched.
Prices for coke, petroleum, chemical, rubber, and plastic products continue to account for the majority of the year-on-year price increases.
These energy-intensive and material-heavy sectors are keeping input costs high for downstream industries, limiting the immediate relief for manufacturers.
The divergence between the monthly improvement and the sticky annual rate highlights the lagged effect of energy and commodity prices on the broader economy.