Slovakia's producer prices fall 0.7% y/y in June 2013

By bne IntelliNews July 26, 2013

Slovakia’s industrial producer prices moved lower on annual basis for the fourth straight month in June 2013 but the decline softened a bit to 0.7% from 1% in May, data from the statistics office showed. The producer price deflation recorded in March 2013 was the first since April 2010.

Industrial producer prices on the domestic market decreased by 0.3% y/y in June, the same as in the previous month. The biggest drop was recorded in the manufacturing of coke and refined petroleum products, where prices fell 6.2% y/y following a 9.9% plunge in May. Export producer prices fell 1% y/y, softening from a 1.4% y/y decline in May.

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 June, Slovakia’s annual headline inflation hit a two-and-a-half year low of 1.6%.

On a monthly basis, producer prices eased 0.2% in June following a 0.4% fall in May. On the domestic market, prices were 0.2% lower m/m in June after falling 0.6% in the previous month. Export prices fell 0.3% m/m, at the same rate as in May.

The annual growth in agricultural producer prices accelerated slightly to 4.2% in June from to 4.1% the month before, as prices of animal products returned to growth after three consecutive months of declines, offsetting a further easing of the crops price growth, which decelerated for the fourth month in a row.

Prices of construction works rose 1.1% y/y in June, while prices of construction materials and components edged down 0.1% y/y.

y/y % change June-13 May-13 Jan-June 2013 2012
INDUSTRIAL PRODUCER PRICES (total) -0.7% -1.0% -0.1% 2.0%
INDUSTRIAL PRODUCER PRICES (domestic) -0.3% -0.3% 0.9% 3.9%
Mining and quarrying -0.5% 0.9% 2.1% 5.1%
Manufacturing -0.5% -0.7% 0.8% 1.3%
--food, beverages and tobacco 2.6% 2.5% 2.8% 1.9%
--textiles, apparel, leather and related products 1.3% 2.4% 1.4% 1.1%
--wood and paper products, printing -1.0% -1.3% -0.9% -3.3%
--coke and refined petroleum products -6.2% -9.9% -3.2% 10.6%
--chemicals and chemical products -1.9% -4.8% -1.9% 2.5%
--pharmaceutical products and preparation 2.1% 2.0% 2.0% 3.6%
--rubber, plastics and other non-metallic mineral products -0.2% 0.1% -0.2% 0.4%
--basic and fabricated metal products, except machinery and equipment -2.7% -2.5% -2.3% -1.6%
--computer, electronics and optical products 3.3% 3.0% 2.4% -0.8%
--electrical equipment -1.6% -1.2% -0.8% 0.4%
--machinery and equipment 8.5% 6.3% 7.0% 2.6%
--transport equipment -0.9% 1.0% 1.9% -3.5%
--other manufacturing, repair and installation of machinery and equipment 2.8% 5.6% 7.6% 5.8%
Electricity, gas, steam and air conditioning supply -0.1% 0.0% 0.9% 7.3%
Water supply, sewerage, waste management and remediation 1.4% 1.5% 4.1% 4.9%
INDUSTRIAL PRODUCER PRICES (export) -1.0% -1.4% -0.8% 0.7%
         
AGRICULTURAL PRODUCER PRICES 4.2% 4.1% 7.3% 6.9%
--Crop products 10.2% 14.4% 21.2% 9.3%
--Animal products 0.4% -0.3% -0.4% 4.0%
         
CONSTRUCTION WORK PRICES 1.1% 0.6% 0.7% 0.6%
CONSTRUCTION MATERIALS PRICES -0.1% -0.4% 0.2% 1.5%
Source: Statistical Office of the Slovak Republic        

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