Industrial prices grew 0.4% m-to-m in May (after falling 0.5% in April), bringing the y-to-y producer price index to 4.4% from 4.2% in April. Growth was in line with market consensus and slightly faster than we expected. While prices in mining industry fell by 3.7%, manufacturing prices jumped by 5.5%, fueled by rising oil prices. Interestingly, construction and service prices grew more modestly by 0.2%, keeping inflation pressures in check.
Overall, we deem the May inflation results as neutral for the central bank monetary policy. Consumer and producer indices were in line with expectations (and only slightly above our forecasts) and thus will not be interpreted as an inflation threat.