PPI falls to 5.7% due to lower fuel prices

Producer Price Inflation (PPI) has fallen sharply for a second straight month in July, reflecting lower fuel prices.

Statistics South Africa’s Producer Price Index dropped to 5.7% year-on-year from 7.5% in June.

The biggest driver of reduced costs at the factory gate was lower diesel and petrol prices following easing tensions, at the time, in the US-Iran war.

PPI is considered an indication of where consumer inflation may head in the next six months .

“We must all give credit to oil prices, as we have seen that the contribution, when it comes to Diesel in June, I mean, it increased by almost 53%.

Now it only increased, you know, by almost just around 29%.

The same applies to petrol as well.

In June, we’re talking 36%.

Now, we are talking only 20%.

And even if you look into the transport cost, that is the equipment thereof, also down by 1.4%.

All because of oil prices that have been going down,” says Chief Investment Officer at Makwe Fund Managers Makwe Masilela. #SAInflation || Headline #PPI inflation declined to 5,7% in July 2026 from 7,5% in June 2026.

Read more here: https://t.co/An84fe4LJ0 #StatsSA #KnowYourStatsZA #GovZAUpdates @GovernmentZA pic.twitter.com/DiWP6yHspm — Statistics South Africa (Stats SA) (@StatsSA) August 27, 2026