Romania’s industrial inflation turns negative in June dragged by energy prices
<p>Industrial price inflation in Romania turned negative -0.3% y/y in June, dragged down by the prices of energy that have constantly dropped from February to reach a negative -7.5% y/y annual contraction in June, according to data published by the statistics office INS.&nbsp;</p>

<p>The industrial prices were largely shaped over the past years by the cost of energy, which soared in 2021-2022 to further correct downwards and stabilise over the past couple of years. The average price of energy has actually decreased by 4.4% over the past three years, after it soared by 176% over the previous three-year period.</p>

<p>In manufacturing, the prices have increased by only 3.3% over the past three years and by 2.2% over the past year.&nbsp;</p>

<p>However, the prices have diverged when it comes to particular categories of goods.&nbsp;</p>

<p>The non-durable consumer goods saw the steepest increase, 21% over the past three years and +5.7% over the past year. The robust private demand and the end-user prices absorbing the previous surge in energy prices have visibly contributed. The prices of durable consumer goods rose at a slower rate: by 12.7% over the past three years and +3.0% y/y, in line with the local currency’s stable exchange rate visible in the prices of tradeable goods. &nbsp;</p>

<p>The prices of capital goods increased by 15.2% over the past three years but only by 2.3% over the past year.&nbsp;</p>

<p>As regards the prices of intermediary goods, which provide an indication of the inflationary pressures on the supply side, they have increased by 2.9% y/y (slower than the prices of consumer goods) while remaining 1.7% lower compared to three years ago – pointing to no supply-side inflationary pressures.</p>

<p><em>iulian@romania-insider.com</em></p>

<p><em>(Photo source: <a href="https://www.dreamstime.com/">Arlawka Aungtun/Dreamstime.com</a>)</em></p>