Annual producer inflation for final manufactured goods decelerated sharply, as expected, to 5.7% in July from 7.5%, due to lower input costs during the month, Statistics South Africa data showed on Thursday.Economists had predicted a similar slowdown in prices at the factory gate after consumer inflation eased in July, reflecting lower fuel prices.The main positive contributors to the headline producer inflation rate were coke, petroleum, chemical, rubber and plastic products, which recorded 15.7% and contributed 3.4 percentage points.Food products, beverages and tobacco products registered 1.9% and accounted for 0.6 percentage points, while metals, machinery, equipment and computing equipment recorded 3.8%, adding 0.6 percentage points.Month-on-month, the producer price index (PPI) decreased by 1% in July after retreating by 0.1% in June. The main negative contributor to the July rate were coke, petroleum, chemical, rubber and plastic products.The PPI measures annual as well as month-on-month changes in the prices of locally produced commodities, using a sample of producers to compile the indices for final manufactured goods — the headline number — as well as: intermediate manufactured goods; electricity and water; mining; and agriculture, forestry and fishing.Annual producer inflation for intermediate manufactured goods was 9.8% in July compared with 12.4% in June, while the index decreased by 1.8% month on month. The annual change in the PPI for electricity and water was 7.5% vs 5.5% in June, and the index was up 5.8% month on month.Producer inflation for the mining segment slowed significantly to 9.9% year on year in July compared with 18.4% in June, and the index decreased by 4.8% month on month. In agriculture, forestry and fishing, the PPI decreased by 4.5% year on year in July after falling by 7.9% in June. Month on month, however, the index increased by 2.4%.Business Day