Czech industrial producer price growth speeds to 1.1% y/y in July, touch above forecast

By bne IntelliNews August 15, 2013

Czech annual industrial producer price inflation accelerated to 1.1% in July 2013 from 0.7% a month earlier, data from the statistics office showed. The reading was a touch above market expectations for a 1% y/y growth, according to a Reuters poll.

July’s annual producer price inflation was affected mainly by higher utilities (+3.6% y/y) and food prices (+4% y/y), the statistics office said, adding that among the main industrial groupings, prices of energy (+2.5% y/y) increased the most. In monthly terms, industrial producer prices edged up by 0.2% in July, following a 0.1% hike in June and above market consensus for a 0.1% m/m rise.

Agricultural producer prices advanced for the 14th month in a row in July but the annual increase of 4.7% was the weakest in 11 months as crop prices significantly eased their growth from double-digit levels in the previous months. Crop prices increased by 4.2% in July, after a 10.4% expansion in June. Prices of animal products were 5.3% y/y higher. On a monthly basis, agricultural prices dropped 2.1% in the seventh month of 2013, after a 0.7% rise in June.

Construction work prices decreased by 1.4% y/y and by 0.1% m/m in July and prices of market services fell by 2.2% y/y and 1% m/m.

The PPI inflation in the Czech Republic eased to 2.2% in 2012 from 5.6% in 2011. The July data indicates that the consumer price inflation, which eased to 1.4% last month, might accelerate slightly in the following months.

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