Actual (May): 0.7 % m/m, 1.5 % y/y
Consensus: 0.2 % m/m, 1.0 % y/y
Previous: 0.7 % m/m, 0.4 % y/y
Growth in the industrial producer prices was mainly driven by prices of metals and metal products. Also, there was an influence of higher prices of refined petroleum products, coke and plastics. On the other hand, prices of food and beverages decreased and muted the growth of the index.
The May figures are above forecast. We can see there an impact of commodity prices that may also influence the consumer prices with some delay. The Czech central bank is holding a monetary meeting next week. The bankers will likely decide between no change and a 25 bp cut in interest rates. Today PPI figures are an argument for the first option, but it will likely be a tight vote.