Reserve Bank faces rates dilemma after producer price uptick

Producer prices quickened to their sharpest levels in more than five years in September, defying market expectations for more muted growth, data released by Stats SA on Thursday showed.

Annual producer price inflation (PPI) for final manufactured goods rose 7.8% in September, its highest level since February 2016, a development that some economists believe will only complicate the outlook for the SA Reserve Bank, as sticky inflationary pressure percolates through an economy that is battling to grow and where demand remains weak...