Montenegro's producer price inflation (PPI) edged up by 0.1% y/y in July, after ticking up by 0.2% y/y in June, the statistics office reported.
The PPI remained almost unchanged last year (down 0.1% y/y through December), affected mainly by low oil prices. This year, producer prices are likely to grow, supporting expectations for CPI inflation.
The PPI index also ticked up 0.1% m/m in July, after falling by 0.4% m/m a month earlier, data showed.
Producer prices in the manufacturing sector fell by 3.2% y/y in July, after dropping 3.3% y/y in June.
The breakdown showed that the prices of paper and paper products increased the most, by 6.4% y/y, followed by leather and leather products (+4.0% y/y). Producer prices of pharmaceuticals declined the most, by 9.3% y/y.
The PPI in the mining and quarrying sector decreased by 1.9% y/y in July after edging up by 0.4% y/y in June. Utilities prices rose at the same pace of 5.3% y/y in July as they did in each of the previous six months.
Growth rate of producer prices of industrial products in the first seven months of 2017 was 0.7% y/y.