Growth of Industrial Producer Prices Slowed Year-on-Year

Industrial producer prices in July increased by 0.7 percent month-on-month, while year-on-year, compared to July last year, their growth slowed to 1.9 percent, according to data from the Croatian Bureau of Statistics (DZS).

Thus, producer prices have increased for the 28th consecutive month on a year-on-year basis, but they continued the trend of slowing growth. Namely, annual rates of producer prices have been continuously rising since March 2021, with a peak of 24 percent in June last year, which was the highest growth rate since the DZS began tracking this data in 2011.

Since July last year, the annual growth rate of industrial producer prices has been continuously slowing. In January this year, it was 14 percent, in February 12.7 percent, in March 9.3 percent, in April 6.5 percent, in May 2.5 percent, and in June 2.2 percent.

When comparing industrial producer prices for the industry as a whole, excluding energy, they were down by 0.2 percent in July compared to June, while compared to July 2022, they were up by 3.1 percent.

Industrial producer prices in the foreign market were down by 0.1 percent in July compared to June, and down by 0.5 percent compared to July 2022.

In the domestic market, producer prices were up by 1.2 percent in July compared to June, and up by 3.7 percent compared to July last year.

On an annual basis, according to the main industrial groupings, the highest increase in producer prices in the domestic market was recorded for non-durable consumer goods, which rose by 7.4 percent. Prices of durable consumer goods increased by 5.3 percent, energy by 2.3 percent, capital goods by 1.3 percent, and intermediate goods by 1.1 percent.

On a monthly basis, in July compared to June, producer prices in the domestic market increased in energy by 4.3 percent, in intermediate goods by 0.1 percent, and in durable consumer goods by 0.1 percent.

At the same time, prices in capital goods fell by 0.8 percent, while in non-durable consumer goods they remained stable.

According to the national classification of activities, in July this year compared to the same month last year, producer prices increased in the supply of electricity, gas, steam, and air conditioning by 20.9 percent, in the supply of water; removal of wastewater, waste management, and environmental remediation activities by 0.6 percent, while they fell in mining and quarrying by 12.7 percent and in manufacturing by 0.4 percent.

On a monthly basis, producer prices increased in mining and quarrying by 9.6 percent and in the supply of electricity, gas, steam, and air conditioning by 5.1 percent.

At the same time, they fell in manufacturing by 0.1 percent, while in the supply of water; removal of wastewater, waste management, and environmental remediation activities remained stable.