Producers' prices grew 0.2% in May, slightly below our and the consensus forecasts that both stood at 0.4% m-to-m. Annual PPI index then fell from 4,0% in April to 3,8% in May. Prices rose most rapidly in the crude oil refineries, followed by price growth of automotive vehicles and foodstuffs. However, wholesale oil prices grew more slowly than we had expected, mainly due to the fact that the PPI is measured typically sometimes around the middle of a month and the price boom observed in the second half of the month was thus missed out.
While industrial prices grew modestly, the agriculture prices rocketed by 3,3% m-to-m in May only and reached a worrying level of 14,8% y-to-y. This should keep pressure on rising retail food prices in the time to come.
(David Marek)