Bulgaria's domestic producer prices fell 0.9% y/y in April 2014, softening from a 1.6% drop the month before, on slower decline in base metals prices driven by rising demand for copper, statistics office data showed. In monthly terms, Bulgarian producer prices declined 0.3% in April after edging down 0.1% in March.
Prices of manufacturing output were unchanged y/y in April, following a 1.1% y/y drop in the previous month as the decline in base metals prices eased to 6.6% y/y from 9.3% in March. Global copper prices took a boost from a massive purchase of imported copper by China's state stockpiler (SRB). In addition, stronger seasonal demand this year has also contributed to higher copper prices. Nickel, the best-performing base metal so far in 2014, also gained in April but aluminum, tin, and zinc dipped.
Producer prices in the mining and quarrying sector dropped 10.1% y/y in April. Iron ore costs plunged 17.1% y/y and coal prices fell 4.5% y/y. The price of iron ore is expected to remain below its 2013 average due to rising supply. The price of coal will be under pressure from increased use of natural gas and shrinking demand from China.
Electricity, heat and gas prices declined 1.3% y/y in April, at the same rate as in the previous month. Furthermore, the cost of energy products inched up 0.4% y/y in April, reversing 0.6% decline in March due to higher oil prices.
The broader producer price index (PPI) (sales abroad included) recorded a deflation of 2% y/y and 0.1% m/m in April.
|Domestic market PPI inflation||m/m||y/y|
|Mining and quarrying||0.8%||-2.2%||-2.8%||-10.0%||-10.8%||-10.1%|
|Electricity, gas and heat generation||0.0%||0.2%||-0.8%||-3.7%||-1.3%||-1.3%|
|Source: statistics office (NSI)|
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