One of Africa’s largest industrial manufacturing economies, South Africa, saw its producer inflation soar by a margin not experienced in over a decade.
For April, South Africa’s producer inflation reached 3%, a 172.7% jump from 1.1% the previous month, owing to the conflict in the Gulf region.
Specifically, the inflation surge was a result of higher fertilizer and energy costs tied to America’s conflict with Iran.
Tensions involving Iran and the closure of the Strait of Hormuz, a critical oil shipping route, have sent shockwaves through global supply chains.
The strait is also an important supply route for liquefied natural gas, oil, and about a third of the nitrogen fertiliser trade.
