Czech industrial producer price growth quickens to 1.7% y/y in Dec, above forecast.

By bne IntelliNews January 15, 2014

Czech annual industrial producer price inflation accelerated to a one-year high of 1.7% in December 2013 from a 0.7% hike the month before, data from the statistics office showed. The reading was above market expectations for a 1.3% y/y growth.

Manufacturing producer charges, which have the strongest weight in the index, increased by 1.3% y/y in December, swinging from a 0.2% y/y drop in November, due to a strong growth in transport equipment prices.

Prices of electricity, gas, steam and air conditioning increased by 3.5% y/y, easing from a 3.8% hike in November and water supply charges grew by 5.7% y/y. Mining and quarrying charges advanced for the second month running in December and at a slightly faster pace than in November – up by 0.3% compared to a 0.2% rise in November.

In monthly terms, industrial producer prices in the country edged up by 0.8% for the second straight month in December.

Agricultural producer prices fell for the fifth month in a row in December going down by 4.3%, softening from a 5.2% decline in the previous month. The decline in December came as crop prices shrank by 11.5%, while the growth in animal products prices speeded up to 6.4% from 5.9%. On a monthly basis, agricultural prices were 2.5% higher than in November, when they grew 2.9%.

Construction work prices decreased by 0.7% y/y and stayed flat on the month in December and prices of market services fell by an annual 1.4% and by 0.6% on a monthly basis.

The PPI inflation in the Czech Republic eased to 0.8% in 2013 from 2.1% in 2012. The December data indicates that the consumer price inflation, which quickened to 1.4% in December from 1.1% in November, will further strengthen in the following months. Prices will also increase as a result of the central bank’s interventions on the currency market aimed at weakening the koruna and bringing inflation up to the bank’s 2% target.

Related Articles

Poland’s PKN Orlen launches offer to delist Czechia’s Unipetrol

Poland’s state-controlled oil and gas company PKN Orlen has launched an offer to take over Czech refiner Unipetrol, the Polish company said on December 13. PKN Orlen said it will go through with ... more

Petr Kellner agrees to buy Skoda Transportation for reported €400mn

Petr Kellner, Central Europe’s richest man, has agreed to buy Skoda Transportation, the Czech manufacturer of electric trains, trams and ... more

CEFC and Penta reported to be bidding together for CME

CEFC, the acquisitive Chinese energy group, and Penta Investments, the closely-held Slovak financial group, are bidding together for Time Warner’s stake in Central European Media Enterprises (CME), ... more