Actual (Apr): 0.0% m/m, 2.2% y/y
Consensus: 0.2% m/m, 2.4% y/y
Previous (Mar): 0.3% m/m, 3.0% y/y
The producer prices stagnated in April, as the high growth of prices of refinery production and chemicals was offset by a decrease in prices of raw materials. The figures are slightly lower than expected.
The prices of coke and refinery production accelerated; in April they added 6 pct. as the drop of
crude oil prices was not yet reflected. The chemicals showed a decent growth, too; their prices increased by 3 pct. On the other hand, the prices of raw materials decreased by 2.8 pct. and we can also see a slight price decrease in the groups of IT equipment and electric devices. Food prices increased by 0.7 pct. compared with the previous month.
The
PPI suggests that inflationary pressure from supply side has weakened faster than expected. Moreover, the next reading will reflect the drop of
crude oil prices that will push the index lower. On the other hand, the index may be positively influenced by the weakening currency. We do not see the April figures as obstacle for monetary easing.