South Africa’s producer inflation slows to 2.2% in January 2026

South Africa’s annual producer price inflation for final manufactured goods slowed to 2.2% in January 2026, down from 2.9% recorded in December 2025.

This is according to data released on Thursday by Statistics South Africa.

The latest figures indicate easing cost pressures at the factory gate, even as some key sectors continued to record strong price increases.

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The data also showed mixed trends across intermediate goods, utilities, and the agricultural sector, providing a broader picture of producer-level inflation dynamics.

**What the data is saying **

South Africa’s Producer Price Index (PPI) for final manufactured goods declined by 0.2% on a month-on-month basis in January 2026. On an annual basis, the headline PPI slowed to 2.2%, reflecting a moderation in price growth compared to December.

• Food products, beverages and tobacco products rose by 2.4%, contributing 0.7 percentage points to the annual PPI rate.
• Furniture and other manufacturing surged by 12.2%, adding 0.5 percentage points.
• Coke, petroleum, chemical, rubber and plastic products declined by 2.3% month-on-month, subtracting 0.5 percentage points from the monthly rate.

The data suggests that while consumer-related goods continued to exert upward pressure on annual inflation, falling petroleum and chemical product prices helped ease overall monthly cost pressures.

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The annual PPI for intermediate manufactured goods increased to 10.5% in January 2026, up from 10.1% in December. On a monthly basis, the index climbed 2.6%, indicating sustained cost pressures within the production supply chain.

• Basic and fabricated metals jumped 25.2%, contributing 11.8 percentage points to the annual rate.
• Sawmilling and wood rose by 8.5%, adding 0.8 percentage points.
• Annual producer inflation for electricity and water eased slightly to 16.7% in January from 16.9% in December.
• Electricity increased 17.5%, contributing 14.4 percentage points, while water rose 11.6%, adding 2.0 percentage points.

The figures show that input costs, particularly in metals and utilities, remain elevated, even as final goods inflation moderates.

In contrast to the easing trend in manufactured goods and utilities, the annual PPI for agriculture, forestry and fishing remained in negative territory. The index fell further to -5.8% in January from -5.0% in December and declined by 2.0% month-on-month.

• Agriculture contracted by 7.7%, contributing -6.7 percentage points to the annual rate.
• The sustained contraction indicates continued weakness in primary sector pricing.
• Declines in agricultural producer prices can influence food supply chains and export revenues.

**What you should know **

Producer price inflation measures changes in prices received by domestic producers for their output and often serves as a leading indicator of consumer inflation. When factory gate prices rise, businesses may eventually pass these costs on to consumers.

• In recent months, South Africa’s headline consumer inflation has shown signs of easing.
• The country’s inflation rate moderated to 3.5% in January, down from 3.6% in December.

Nigeria also recorded a marginal decline in inflation during the same period.