JOHANNESBURG - Producer inflation, which reflects the cost of producing goods at factories, farms and mines, remains high but it's dipped slightly compared with a year ago.
READ: US retail sales and producer prices fall, easing Fed pressure
This may be good news for future prices for consumers.
Producer inflation slowed to 10.6-percent year-on-year in March, from 12.2-percent in February.
Food and fuel prices continue to pressure producers.
Although it's up on a month to month basis, economists say producer inflation should ease in the coming months.
Elize Kruger, an economist, said, "there is a sense that we will see a slight moderation in the base of price increases. But in the couple of the specific factors, if I just quickly think about the food price basket, there are still further pressure on dairy products and I think a couple of the products will continue to get the pressure on the cost price side from things like load shedding mitigation which is not going to go away for us any time soon."
"So overall, I think the base is playing a role, but in this month, if you look at the monthly growth rate, is still 1-percent."
"So that is still a fairly big monthly change, if you look at it historically. But comparing to last year's 2.5-percent, is there a moderation. We should dip below double digits in a month or two."