Czech industrial producer prices fall for fifth month in May, defying expectations for increase

By bne IntelliNews June 16, 2014

Lower energy and mining costs continued to push the Czech industrial producer price index down for the fifth straight month in May 2014, data from the statistics office showed. Prices ticked lower by 0.1% y/y in May, slightly softening from a 0.3% decline registered in April. The reading defied market expectations as analysts were forecasting a 0.1% gain.

Manufacturing producer charges, which have the strongest weight in the index, increased by 1.9% y/y in May, speeding up from 1.6% the month before due to a faster growth in food prices and rising coke and refined petroleum products as well as metals prices.

Prices of electricity, gas, steam and air conditioning declined by 8.6% y/y in May, the same as in April, while water supply charges grew by 3.4% for the fifth straight month. Mining and quarrying continued to fall deepening their annual decline to 4.6% in May from 4.1% the month before.

In monthly terms, industrial producer prices in the country stayed unchanged from April when they also stagnated m/m.

Agricultural producer prices fell for the tenth consecutive month in May but at the much softer rate of 0.7% compared to a 2.8% y/y drop in the previous month. The decline came as crop prices shrank by 7.7%, while the growth in animal products prices quickened to 8.7% from 7.8% in April. On a monthly basis, agricultural prices edged up by 0.2% from April when they were down by 0.1%.

Construction work prices stagnated on the month and were by 0.5% higher on the year in May. Prices of market services also stayed unchanged from April but grew by 0.4% on an annual basis, registering the first increase in 15 months.

The PPI inflation in the Czech Republic eased to 0.8% in 2013 from 2.1% in 2012. Data in the first months of the year indicates that the consumer price inflation, which edged up to 0.4% y/y in May from a five-year low of 0.1% in April, will remain muted in the following months. The Czech central bank has said that the threat of deflation has been averted thanks to the easing of the monetary conditions via the forex interventions. Inflation should return to the bank’s 2% target at the end of the year.

Related Articles

Czech CPI buys huge Central European retail portfolio

Czech real estate investor CPI Group has bought a large portfolio of Central European retail assets, local media reported on January 17. The investor, which has grown its holdings rapidly since ... more

CEZ ignores Czech finance minister and re-elects CEO

The supervisory board at Czech power group CEZ ignored pressure from the finance ministry to dump the current management, local media report. Finance Minister Andrej Babis has been accumulating ... more

Japan’s Asahi buys a huge round in Central Europe

Asahi has beaten a host of regional heavyweights in the race to buy SABMiller’s Central and Eastern European beer brands, the Japanese brewer announced on December 13. The Asian giant said it ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss