PPI falls to 5.7% due to lower fuel prices

Producer Price Inflation (PPI) plummeted to 5.7% year-on-year in July 2026, a drop from 7.5% in June, primarily due to reduced fuel prices. Statistics South Africa reported that the decline was largely driven by lower diesel and petrol prices following easing tensions in the US-Iran war. Chief Investment Officer at Makwe Fund Managers, Makwe Masilela, attributed the drop to a decrease in diesel prices by around 29%, from an almost 53% increase in June, and a 20% reduction in petrol prices, down from a 36% increase.

Additionally, transport costs linked to equipment also fell by 1.4%. PPI serves as an indicator of potential consumer inflation in the coming six months.