Global prices continue to drive up producer prices
Global price changes continued to determine producer price dynamics in January as well. As the producer prices of both exported and domestically sold production grew, the producer price index (PPI) rose 1.3% over a month and 8.4% over a year. The greatest effect on price rises has had the price hikes in the production of food products, which reached 2.3% per month, having an equally significant effect on both exported production and that sold in the domestic market.
Both the rising prices of raw materials and the ever increasing global demand will result in rising producer prices, especially those of exported products, this year as well. As the rise of labour costs is expected low this year, the exporting enterprises will have an opportunity to successfully compete with other world businesses, earning additional profits from the rising prices and growing demand.
The producer prices of products sold locally will continue to be limited by the continued low local demand and low labour costs; yet even here it is unavoidable that prices will rise to some extent as a result of global trends.