Actual (March): 0.7% m/m; -0.3% y/y
Consensus: 0.2% m/m; -0.2% y/y
Previous (March): 0.1% m/m; -0.8% y/y
Producer prices sharply increased in April as rising demand led to higher commodity prices. Coal prices jumped by 9.7 percent, prices of coke and refinery products by 4.0 percent, prices of chemical products rose by 5.4 percent, iron ore price by 6.1 percent. Coal and coke prices development corresponds to the recent statement by about contracted coal prices.
Rising prices of commodities led to the end deflation in annual figures that lasted 16 months. Our forecast points to PPI inflation at 2.1 percent at the end of this year. Producer prices surprised on the upside and should support arguments for stable CNB's interest rates.