Slovakia’s industrial producer prices moved lower on annual basis for the seventh straight month in September 2013 declining by 1.9%, deeper than a 1.5% fall in August, data from the statistics office showed. This was the steepest annual decline in producer prices registered since March 2010.

Industrial producer prices on the domestic market decreased by 0.8% y/y in September, following a 0.7% decline the month before. The biggest drop was recorded in the manufacturing of coke and refined petroleum products, where prices fell 9.4% y/y, following a 4.6% drop in August.

Export producer prices fell 2.6% y/y, deepening from 2% y/y decrease in August.

Producer prices are a key preliminary indicator for the dynamics in consumer prices, so the data suggests that consumer inflation would remain muted in the near term. In September, Slovakia’s annual headline inflation eased to 1%, the lowest level since Nov 2010.

On a monthly basis, producer prices rose for a second month in a row by 0.1% in September. On the domestic market, prices were 0.2% higher m/m, following a 0.4% m/m increase in August. Export prices remained unchanged in September after falling 0.1% m/m a month earlier.

Agricultural producer prices decreased by 10.9% y/y in September following a 12.1% y/y decline a month earlier. Crop prices went down by 15.8% y/y, compared to 16.9% y/y decline in August. The prices of animal products fell 0.8% y/y last month after increasing 0.2% y/y in August.

Prices of construction works rose 0.7% y/y in September, while prices of construction materials and components dipped 1.4% y/y.