By the end of June 2023, producer prices of industrial products on the domestic market grew by 2.2% YoY, while on a MoM basis, they increased by 0.7%.
The latest producer prices of industrial products (PPI) overview has been published by the Croatian Bureau of Statistics, DZS. In the report, we can see that the producer prices of industrial products increased by 2.2% YoY, and 0.7% MoM on the domestic market. Meanwhile producer prices, excluding Energy increased by 0.3% MoM, and by 5.7% YoY showing us that the primary cause for the uptick in MoM changes was caused by the recent upward momentum in energy prices.
Breaking down the PPI by categories, on a YoY basis, producer prices of industrial products increased in Non-durable consumer goods by 7.8%, in Capital goods by 3.1%, in Intermediate goods by 1.4%, and in Durable consumer goods by 0.7%, while they decreased in Energy by 5.4%.
Meanwhile, on an MoM basis, producer prices of industrial products increased in Energy by 3.8% and in Non-durable consumer goods by 0.5%, while at the same time, they decreased in Intermediate goods by 0.4% and in Durable consumer goods by 0.1%, while they remained stable in Capital goods.
Producer prices of industrial products (June 2016 – June 2023, YoY %)
Source: DZS, InterCapital Research
Next up, we have the breakdown of the producer prices of industrial products by sector. On a YoY basis, producer prices increased in Electricity, gas, steam and air conditioning supply by 19.3%, in Manufacturing by 0.9% and in Water supply; sewerage, waste management and remediation activities by 0.7%, while they decreased in Mining and quarrying by 17.5%. Meanwhile, on an MoM basis producer prices increased in Electricity, gas, steam and air conditioning supply by 2.4%, in Manufacturing by 1.1% and in Mining and quarrying by 0.1%, while they decreased in Water supply; sewerage, waste management and remediation activities by 0.1%.
The trend of slowing YoY increases in the PPI has continued, seeing PPI readings in the lower single digits is an encouraging sign for the consumers. However, we note that while YoY data is encouraging, MoM data is less so. Energy prices heavily weighed in on the MoM reading due to the recent supply reductions imposed by OPEC and Russia, and given the uncertainty of the situation, further growth could be seen.
