Producer price inflation — the increase in factory gate prices — eased further to 6.6 percent in April 2012, Statistics South Africa said on Thursday.
"This rate is 0.6 of a percentage point lower than the corresponding annual rate of 7.2 percent in March 2012," the agency reported.
The lower annual rate was driven by slower inflation in electricity, petroleum and coal, metal products and basic metals.
The decreasing rate of inflation was partially counteracted by increases in mining and quarrying, other manufacturing, rubber and plastic products, and electrical machinery and apparatus.
Between March and April, the PPI for domestic output increased by 0.3 percent.
The PPI measures the cost of a basket of goods needed by a typical commodity consumer, and measures inflation at factories, mines and farms.
The factory gate price is the actual cost of manufacturing goods before any additional charges are added to give a profit.