|
Related Topics |
|
In this article we cover the latest import and export price of South Africa as measured by Statistics South Africa (Stats SA) in their Unit Value Indices (UVI). A unit value is a derived price by dividing the customs value by the reported quantity. So UVI's are indirect prices that are tracked over time and is used as a best approximation of import and export prices of South Africa
|
|
Export and import price growth for March 2020
The two main drivers of import and export inflation is the exchange rate and product prices (and for large commodities and goods internationally quoted prices). So exchange rate movements and movement of international commodity prices such as coal, gold, platinum, oil etc all have a significant impact on the measured import and export prices.
Below key findings of the Unit Value Indices March 2020 publication of Statistics South Africa
Exports
The UVI for exported commodities shows an annual rate of change of 9,0% in March 2020. From February 2020 to March 2020 the UVI for exported commodities increased by 5,7%. The main contributors to the annual rate of 9,0% were metal products, machinery and equipment (8,7 percentage points) and ores and minerals (1,6 percentage points) (Figure 4.2). The main contributors to the monthly increase of 5,7% were metal products, machinery and equipment (3,4 percentage points) and ores and minerals (1,7 percentage points)
Imports
The UVI for imported commodities shows an annual rate of change of -7,2% in March 2020. From February 2020 to March 2020 the UVI for imported commodities decreased by 0,8%. The main contributors to the annual rate of -7,2% were metal products, machinery and equipment (-4,9 percentage points), other transportable goods (-2,5 percentage points) and crude petroleum (-1,4 percentage points) (see Figure 5.2). The main contributor to the monthly decrease of 0,8% was crude petroleum (-2,1 percentage points)
Below key findings of the Unit Value Indices March 2020 publication of Statistics South Africa
Exports
The UVI for exported commodities shows an annual rate of change of 9,0% in March 2020. From February 2020 to March 2020 the UVI for exported commodities increased by 5,7%. The main contributors to the annual rate of 9,0% were metal products, machinery and equipment (8,7 percentage points) and ores and minerals (1,6 percentage points) (Figure 4.2). The main contributors to the monthly increase of 5,7% were metal products, machinery and equipment (3,4 percentage points) and ores and minerals (1,7 percentage points)
Imports
The UVI for imported commodities shows an annual rate of change of -7,2% in March 2020. From February 2020 to March 2020 the UVI for imported commodities decreased by 0,8%. The main contributors to the annual rate of -7,2% were metal products, machinery and equipment (-4,9 percentage points), other transportable goods (-2,5 percentage points) and crude petroleum (-1,4 percentage points) (see Figure 5.2). The main contributor to the monthly decrease of 0,8% was crude petroleum (-2,1 percentage points)
Export UVI rates of change (month on month and year on year)
The image below shows the month on month and year on year change in the export UVI of South Africa. In recent months one can see a sharp rise in the month on month and annual export UVI. This is good news for South African manufacturers and producers that export as it shows higher prices are being collected for goods exported.
Import UVI rates of change (month on month and year on year)
The image below shows the month on month and year on year change in the import UVI of South Africa. In recent months one can see that the month on month and annual import UVI is predominantly negative which is a very good thing for South Africa's inflation rate as the import inflation is negative and therefore shows that South Africa is not currently importing any inflation (price of imported goods are not increasing)
So the South African Reserve Bank will be happy to see this as this buys them some space in terms of monetary policy, which has seen the bank cut interest rates significantly since the start of the year to counteract some of the effects of the Coronavirus on South Africans, South African Businesses and the South African economy as a whole. Lower general rates of inflation provides more space for lower interest rates, which will assist in stimulating economic growth.