In November 2023, the Croatian industrial producer prices on the domestic market increased by 0.1% MoM and declined by 1.4% YoY.
The latest report on the developments recorded by the Croatian industrial producer prices has been released by the Croatian Bureau of Statistics, DZS, for November 2023. According to the report, the industrial producer prices on the domestic market grew by 0.1% MoM but declined by 1.4% YoY in November 2023.
Industrial producer prices growth YoY (January 2021 – November 2023, %)
Source: DZS, InterCapital Research
If we were to look at the price development excl. Energy, the industrial producer prices decreased by 0.2% MoM, while having increased by 1.9% YoY. Breaking this growth down to its components, on a MoM basis, producer prices grew in Energy only, by 0.9%. On the other hand, Capital goods recorded a 0.6% decrease, Non-durable consumer goods a 0.3% decline, and Intermediate goods a 0.1% decrease, while prices in Durable consumer goods remained stable.
Furthermore, on a YoY basis, producer prices grew in Non-durable consumer goods by 4.5%, in Durable consumer goods by 2.8%, while they decreased in Energy by 7.6%, in Capital goods by 1.9%, and in Intermediate goods by 0.4%. Meanwhile, looking at the NKD 2007 sections and divisions, on the domestic market, prices in Mining and Quarrying grew by 8.3% MoM, and 4.4% YoY. This was primarily driven by higher prices of extraction of crude petroleum and natural gas, which increased by 15.8% MoM and 2.3% YoY. Meanwhile, in Manufacturing, prices decreased by 1% both on a MoM and YoY basis.
As such, we can see that there has been a slowdown in the price growth for industrial producers, which is a signal that could indicate that consumer prices might stabilize as well. However, the industry is a lot more sensitive to price fluctuations, for example, energy expenses increasing. As such, it would take a longer period to gauge if the price growth has stopped, or if this is just a one-off event. Given that last month, the industrial prices decreased by 1.1% MoM and 0.5% YoY, it could be said that this is the beginning of a trend. However, only time will tell. Finally, taking a look at the industrial producer prices’ development since 2015, in November 2023 they increased by 46% compared to that period. Excluding Energy price growth, the increase amounted to 17.2%. Breaking this down further, prices in Intermediate goods increased by 19.8%, in Energy by 128%, in Capital goods by 6.9%, in Durable consumer goods by 18.1%, and in Non-durable consumer goods by 19.4%.
Total industrial producer prices growth by categories compared to 2015 (November 2032, 2015=0, %)
Source: DZS, InterCapital Research
