Price pressure on producers is significantly reduced

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Producer and import prices, which were 2.1 percent in March, increased by 1.0 percent compared to the same month of the previous year.

According to the Federal Statistical Office’s (FSO) statement on Monday, import prices in April were even 0.9 percent below the April 2022 level. Meanwhile, domestic prices increased by 2.9 percent.

The so-called composite index (PPI) of producer and import prices peaked at 6.9 percent in May and June 2022 and has fallen for most months since. Producer prices were even lower when they were last slightly negative at -0.2 percent in March 2021.

In March, the general index increased by 0.2 percent compared to the previous month and became 109.5 points. Petroleum products became cheaper, especially as higher prices had to be paid for machinery.

The PPI is considered a leading indicator for the development of consumer prices, because production costs are often reflected in consumer prices. However, it has significantly higher fluctuations and is much more volatile due to the high dependence on raw materials.

(SDA)

Source :Blick