Romanian industrial prices increase by 3.1% m/m in June

Romanian industrial prices increase by 3.1% m/m in June
By Iulian Ernst in Bucharest August 3, 2022

Romanian average industrial prices increased by over 3.1% m/m in June, driven up by the 8.0% m/m rise in energy prices, according to data released by the statistics office INS.

Although the energy prices remained in June just under the record reached in March, the overall industrial price index reached a new maximum – and it is still expected to advance, at least as a result of the energy prices passing through into investment or consumer goods.

On an annual basis, the energy prices surged by 139.6% y/y, while the prices of durable and non-durable consumer goods rose by 18% y/y and 16% y/y respectively. The prices of capital goods rose by only 10% y/y.

Overall, industrial prices increased by 48% y/y as of June, remaining close to the 50% y/y level for the fourth month in a row.

Consumer price inflation hit 15% in June and is expected to remain in the double-digit area at least by mid-2023. 

Compared to the first month of 2020, before the pandemics, energy prices surged by 152% (2.5 times) while the prices of durable/non-durable consumer goods rose by only 26% and 23% respectively.

This best illustrates the tensions accumulated along the production chain, tensions likely to partially translate into higher (consumer or investment) end-user prices. To some extent, however, the industry will have to accept higher relative energy prices and share the burden with the end-users.