Industrial prices in RO keep recovering in July
The industrial producer price index in Romania rose by 0.5% in July compared to June, after a 0.8% monthly advance in June, according to the National Statistics Institute (INS).
Lower commodity prices pushed the index down by 4.1% during January-May.
Compared to a year ago, Romania's industrial producer prices were 0.7% lower, largely reflecting the plunge of more than 30% experienced by the producers in the oil (and other fuels) processing industries.
In the pharma industry, the producer prices rose by nearly 15%, as a shift and expansion of the production capacities to address the (robust) demand resulted in higher costs matched by higher market prices of the final products.
High increases were also seen in the labor-intensive industries where the production decreased and involved supplementary sanitary protection costs (apparel, +4.2% year on year), and in industries where the demand remained strong (construction materials, +5.2% year on year).
In the automobile industry, the producer prices increased by 5.4% year on year as of July, as the production lagged behind the capacity resulting in a higher share of overhead costs.
By category of goods, both the durable and non-durable goods' industrial prices rose by over 3% year-on-year, while the energy prices (-11.3% down year on year) dragged down the overall index.
Prices of capital goods remain high (+5.4% up year on year) due to still weak production.