Frontal deflation: PPI and agricultural producer prices still falling down

Industrial producer prices decreased by 0.2%, month-on-month, in May, following a drop by 0.5% in April. We could observe a fall in prices in majority of industrial branches. The most significant changes in prices occurred in manufacture of coke, refined petroleum products and manufacture of basic metals and fabricated metal products, where recent koruna's appreciation and declining prices of raw materials affected production costs. Agricultural producers also markedly reduced their prices. Index of agricultural producer prices fell by 2.7%, month-on-month, in May. Thus, all three important price indices (CPI, PPI and agricultural producer prices) decreased in May.

David Marek