Producer price inflation (PPI) held steady at an annual rate of 2.9% in November, unchanged from a month earlier. Stats SA said the annual percentage change in the PPI for electricity and water was 15.3% in November, down from 16.1% in October. However, mining PPI rose to 19.9% from 18.4% in October.
PPI measures the increase or decrease in the cost for goods before they reach consumers and is therefore an important leading indicator of consumer inflation. The gauge also offers important insights into the overall economic health of various sectors and guides monetary policy and business decisions. “Annual producer price inflation (final manufacturing) was 2.9% in November 2025, the same rate as in October 2025.
The producer price index (PPI) remained unchanged month on month,” Stats SA said. The PPI data comes a day after Stats SA reported that consumer inflation eased to an annual rate of 3.5% in November from 3.6% in October. A Nedbank economic insight report had anticipated the PPI would ease from2.9% to 2.8%in November, citing lower fuel costs.
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“Despite the expected decrease in November, both CPI [consumer price index] and PPI are still forecast to trend higher in the coming months due to the lower base effects established towards the end of last year and into the early part of this year,” it said. “Food prices at the producer level likely remained steady, with the impact of high meat prices offset by moderation in other categories, which benefited from favourable weather, improving logistics and a stable power supply.”
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