Industrial prices in Romania drop for second consecutive month

Industrial production prices, or factory-gate prices, decreased for the second consecutive month in Romania in May, when they reached the lowest level in eleven months.

The 13.7% drop in energy prices over the past two months pushed down the overall industrial prices by 5.4% while the manufacturing prices decreased by 0.8%.

On an annual basis, the industrial price inflation eased to 7.7% y/y in May from 11.6% y/y in April and 13.6% y/y in March.

The prices of intermediary goods have remained stable since May 2022 (despite 12.4% y/y higher energy costs) and posted a negative 1.2% y/y performance as of May 2023. The price of capital goods posted a moderate 6.5% y/y advance as well, in line with subdued investment activity and reflecting their lower dependence on energy costs.

When it comes to consumer goods, however, their prices reflect better the still high energy costs and, on the other hand, still robust demand: non-durable consumer goods were 13.2% more expensive in May compared to the same month last year.

The prices of durable consumer goods increased by only 7.9% y/y as of May.

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