The reading was significantly higher than market expectations and reflects the impact of rising oil prices during the month amid heightened tensions in the Middle East.
South Africa's factory gate inflation accelerated far more sharply than expected in May as higher fuel costs rippled through the manufacturing sector, raising concerns that businesses and consumers could ultimately bear the burden.
The latest data from Statistics South Africa (Stats SA), released on Thursday, showed that final manufactured producer price inflation (PPI) climbed to 7.8% year-on-year in May, up from 4.8% in April. Producer prices also increased by 2.6% compared with the previous month.
The stronger-than-anticipated reading largely reflected the impact of elevated oil prices during May, when tensions in the Middle East pushed Brent crude above $100 (R1,647) a barrel.
Investec economist Lara Hodes said the outcome came in above expectations, noting that the oil price shock translated into another steep increase in local fuel prices during May.
