The drop in producer prices of goods sold in the domestic market confirms the expected deflation of consumer prices
Even though the producer prices of goods sold domestically continued to fall, producer prices in the industrial sector overall, after continually decreasing for eleven months, in September rose 0.3% over August. This increase was by and large determined by rising world prices of metals and the related increases of producer prices of export goods, which had already been posting increases for a third consequtive month. The producer prices of goods sold in the domestic market continued to drop however, being affected by reduced energy tariffs and the persistingly weak domestic demand.
Producer prices - both of exported goods and goods sold domestically - are still lower (by 8.0%) than in September of last year, albeit the rate of decrease has slowed down. Even though metal prices have resumed climbing over August of this year, both their levels and those of producer prices of wood products continued to be significantly lower than a year ago and are the main contributors to the annual drop in producer prices.
The drop in producer prices of goods sold in the domestic market is one of the indicators that confirm the forecast of deflation in consumer prices over the next few months.