South Africa’s annual producer price inflation for final manufactured goods rose to 7.8% in May 2026, up from 4.8% in April, driven largely by higher prices for petroleum, chemical, rubber and plastic products.

Statistics South Africa disclosed this in its latest Producer Price Index report, which showed that the PPI for final manufactured goods increased by 2.6% month-on-month in May.

The increase reflected broad price pressures across manufacturing, mining, electricity and water, although agricultural producer prices remained lower than a year earlier.

What the report is saying

The annual PPI for final manufactured goods accelerated by 3 percentage points in May, with coke, petroleum, chemical, rubber and plastic products making the largest contribution to the increase. The category recorded annual inflation of 22% and contributed 4.7 percentage points to the headline PPI rate.

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  • Paper and printed products increased by 8.7%, contributing 0.7 percentage points.
  • Food products, beverages and tobacco products rose by 2.1%, contributing 0.6 percentage points.
  • Metals, machinery, equipment and computing equipment increased by 2.9%, contributing 0.5 percentage points.
  • Coke, petroleum, chemical, rubber and plastic products rose by 9% month-on-month, contributing 2 percentage points to the monthly PPI increase.

The sharp rise in petroleum-related products was the main driver of the increase in producer prices during the month.

More Insights

The report also shows that producer price pressures also increased in intermediate manufactured goods, where annual inflation rose to 13.7% in May from 10% in April. The index for intermediate manufactured goods increased by 2.4% month-on-month.

  • Basic and fabricated metals rose by 14.3%, contributing 6.9 percentage points to the annual rate.
  • Chemicals, rubber and plastic products increased by 17.2%, contributing 5.2 percentage points.
  • Sawmilling and wood products rose by 8.2%, contributing 0.8 percentage points.
  • Chemicals, rubber and plastic products increased by 10.6% month-on-month, contributing 3 percentage points.

The data showed that higher input costs for manufacturers continued to build across several industrial categories.

The latest data indicates that energy-related and industrial input costs remained a major source of inflationary pressure.

  • The PPI for electricity and water rose by 12.3% year-on-year in May, compared with 12.5% in April.
  • Electricity prices increased by 12.4%, contributing 10.4 percentage points to the annual electricity and water PPI rate.
  • Water prices rose by 11%, contributing 1.8 percentage points.
  • The electricity and water index increased by 1.1% month-on-month, driven by a 1.3% increase in electricity prices.

The persistence of high producer inflation could raise cost pressures for businesses that rely heavily on energy and manufactured inputs.

South Africa’s mining PPI rose by 28.1% year-on-year in May, up from 24.9% in April, while producer prices in agriculture, forestry and fishing remained in deflation.

  • Non-ferrous metal ores rose by 50.4%, contributing 22 percentage points to mining PPI inflation.
  • Gold and other metal ores increased by 11.6%, contributing 3.3 percentage points.
  • Coal and gas prices rose by 8.1% annually and 11.3% month-on-month.

The PPI for agriculture, forestry and fishing declined by 5.4% year-on-year, compared with a 6.5% decline in April.

Statistics South Africa said agricultural prices increased by 1.3% month-on-month in May, even as the sector’s annual producer price index remained below its level a year earlier.

What you should know

Nairametrics earlier reported that South Africa’s annual inflation rate accelerated to 4.5% in May 2026, up from 4.0% in April.

  • South Africa’s inflation increase mirrors broader global trends, with higher energy prices affecting many economies.
  • Nairametrics recently reported that Nigeria’s headline inflation rate also edged higher, rising to 15.93% in May 2026 from 15.69% in April, reflecting continued price pressures across Africa’s largest economies.

Recently, South Africa reported a further deterioration in the country’s labour market, with the official unemployment rate rising to 32.7% in the first quarter of 2026, up from 31.4% in the fourth quarter of 2025.