Serbia’s PPI growth slows to 0.5% y/y in October 2013.

By bne IntelliNews November 5, 2013

Serbia's industrial producer price index (PPI) on the domestic market edged up 0.5% y/y in October 2013, slowing down from a 1.6% y/y hike in September on falling manufacturing and mining and quarrying producer costs, the statistics office said in a statement on November 5. In monthly terms, the PPI fell 0.7% in October after inching down 0.4% the month before. Compared to the 2012 monthly average, the reading was up 3.6%, the office said.

Manufacturing prices contracted 1.5% y/y in October following a 0.2% y/y drop in September. Falling coke and petroleum products, basic metals, food and motor vehicles producer prices offset rising beverages, tobacco, wood and pharmaceutical products producer charges.

Prices in the mining and quarrying sector, likewise, continued retreating, shrinking 11.3% y/y in October after a 10.8% y/y decline in September. The reading was dragged down by falling metal ores, coal and lignite and crude petroleum and natural gas extraction costs.

Prices of water supply, sewerage and waste management recorded the strongest annual growth of 21.3% in October, despite easing from a 22.9% y/y rise the month before. Utilities charges climbed 10.4% y/y in October, also slowing from a 10.7% annual hike in September.

The statistics office will publish data on the broader industrial producer price index, which includes domestic and export sales, on November 7.

Falling supply side pressures on prices will likely translate into further decline of the CPI inflation. The CPI eased to 4.9% y/y in September from 7.3% y/y the month before, falling within the central bank’s target tolerance band of 2.5-5.5% for the first time since June 2012.

Related Articles

Chinese investors interested in ex-military airport in Serbia’s Uzice

Companies from China are interested in investing in Ponikve Airport in the western Serbian town of Uzice, according to the local authorities, which have proposed an acquisition or a public-private ... more

Serbia to raise public sector wages and pensions in 2018

Pensions and wages of workers in Serbia’s public sector will be increased by 5%-20% as of 2018, Prime Minister Ana Brnabic announced on October 14 when she marked the first 100 days ... more

Serbia’s central bank cuts key policy rate to 3.5%

The National Bank of Serbia (NBS) executive board decided to cut the key policy rate to 3.5% on October 9, folowing cut to 3.75% on September 7, after keeping it stable at 4% for the ... more