Producer prices driven up by a rise in metal prices
Producer prices continued to rise in July; they were 8.0% higher than a year ago. The 0.7% month-on-month increase was primarily on account of the appreciation in metal production (+6.4%) determined by the global rise in metal prices. In other industries prices have risen either more moderately or even dropped.
The rise in the producer prices of metals had a substantial effect on the average price level of exports, which grew 1.2% over June. The producer prices of products sold in the domestic market appreciated by 0.4%. They were driven up by the rise in energy production prices because of the rise in the sales price of natural gas as well as by the appreciation of manufacturing industry products where producer prices rose in the printing and recording industries and in beverage production. Producer prices of food rose at a substantially slower pace, which serves to alleviate the upward pressure on retail prices.
Producer prices are expected to continue to rise in the near future. Particularly in the domestic market, the growing energy costs will continue to drive up producer prices. In the future, however, an abatement of the upward pressure on producer prices by external factors is expected as the prices of energy resources and food stabilize in the global markets.