Industrial prices up 14% YoY in Romania as of July

The industrial prices (factory-gate prices) index in Romania increased by nearly 14% year-on-year as of July, after a 2.3% monthly leap.

In the energy sector, the industrial prices soared by 31% YoY after another major advance seen in July (+6.6%), announced the statistics office INS.

The prices of the intermediary goods increased by only 1.8% in July but compared to a year ago, they are 17.3% larger - three times more the advance of the prices of the durable and non-durable consumer goods (+5%-6% YoY).

The big picture suggests that the higher energy prices have not yet passed through to the consumer prices, and therefore further supply-side inflationary pressures are expected.

The consumer price inflation neared 5% YoY as of July, up from under 4% as of June.

Rising energy prices, as well as other factors, will cause food prices to increase by 10-12% on average in the coming months, but some products, such as pork, dairy and bread, will see higher price increases compared to the average, said the president of the National Federation of Trade Unions in the Food Industry Sindalimenta, Dragoş Frumosu, according to Economica.net.

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