Year-on-year growth in industrial producer prices accelerated to 9.9 percent in September from 9.3 percent in August, the last such increase was in March 1993. Rising prices also accelerated for other producers, with their prices indicating future consumer prices. In agriculture, prices were higher by 8.4 percent compared to last September, in construction by 6.8 percent and prices of market services for enterprises by 1.6 percent. The Czech Statistical Office (CSO) informed about it today on its website .
“After a long time, Czech industrial producer prices did not surprise with higher-than-expected growth in September. Prices will continue to push up supply chain complications in the near future.
Industrial producer prices have been rising year on year since February and growth is still accelerating. As in previous months, this was mainly due to prices in the area of coke and refined petroleum products in September. Base metals and fabricated metal products rose by 28 percent compared to last September, and chemicals and products rose by almost two-fifths. Prices of wood, paper and printing were a quarter higher. Prices of food products, beverages and tobacco rose by two percent year on year. Only means of transport became cheaper, by 2.1 percent.
The rise in prices of agricultural producers accelerated year-on-year from 7.9 percent in August. According to the CZSO, prices in crop production increased by 11.2 percent compared to last September and in animal production by 4.1 percent. For example, cereals were nearly a fifth more expensive, oilseeds 11 percent, milk 8.6 percent, and poultry 2.5 percent more expensive. In addition, potatoes fell by 1.2 percent year on year, fruit prices were lower by two percent and pigs for slaughter by 8.4 percent.
Year-on-year growth in construction work prices accelerated from 6.6 percent in August in the ninth month. For example, construction material prices were up 16.5 percent year on year in September, up from 16 percent in August.
Market services for enterprises also recorded a higher rate of price growth, with year-on-year price growth accelerating to 1.6 percent from 1.2 percent in August. Employment services became more expensive by 7.7 percent and advertising and management consultancy services rose by about three percent. On the other hand, information services were 2.4 percent cheaper year-on-year.
In these production areas, prices also rose month-on-month. Industrial producers increased by 0.7 percent compared to August, and continued to grow for the tenth month in a row. Prices of construction work increased by 0.6 percent month-on-month and in agricultural producers and market services for enterprises by 1.2 percent.
“The development of producer prices is a signal for the CNB to continue raising its interest rates,” said Radomír Jáč, chief economist at Generali Investments CEE. According to Komerční banka’s chief economist Jan Vejmělek, it is thus likely that the CNB will raise interest rates by half a percentage point at the beginning of November.