Slovakia’s industrial producer prices moved lower on annual basis for the fifth straight month in July 2013, as the decline deepened slightly to 0.8% from 0.7% in June, 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 0.5% y/y in July, following a 0.3% fall in the previous month. The biggest drop was recorded in the manufacturing of coke and refined petroleum products, where prices fell 3.2% y/y, following a 6.2% plunge in June. Export producer prices fell 0.9% y/y, softening from a 1% y/y decline in June.

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 July, Slovakia’s annual headline inflation hit a two-and-a-half year low of 1.5%.

On a monthly basis, producer prices eased 0.5% in July after falling by 0.2% fall in June. On the domestic market, prices were 0.5% lower m/m in July while in June they dropped by 0.2%. Export prices fell 0.4% m/m following a 0.2% decline in June.

Agricultural producer prices plunged 8.5% y/y in July after rising in each of the previous six months of the year. Crop prices, which have grown at double digit annual rates since the start of the year, dropped 11.7% y/y in July. The prices of animal products eased 0.1% y/y following a 0.4% growth in June.

Prices of construction works rose 0.7% y/y in July, while prices of construction materials and components dipped 0.5% y/y.