Romania's industrial prices down 4% y/y in April
<p>The annual decline of industrial (factory gate) prices in Romania moderated to 4% y/y in April from 8% y/y in March, after the prices remained virtually stable on a monthly basis, according to the statistics office INS.</p>

<p>However, the dynamics were highly contrasting among different categories: the negative growth of the overall industrial price index was caused by the 13.4% y/y plunge in the price of energy that translated into a 3.7% decrease in the intermediary goods' prices.&nbsp;</p>

<p>But the prices of end goods increased quite significantly when it comes to capital goods (+6% y/y), but also for the consumer goods. The prices of durable consumer goods increased by 1.9% y/y and those of non-durable consumer goods by 3.9% y/y – figures close to those seen in March.</p>

<p>The spread between industrial (and energy) prices and end goods' prices should, in principle, consolidate industrial companies' financial robustness, and this may explain the "positive" PMI readings in March-April. In broader terms, this is due to robust (mainly domestic) demand.</p>

<p>Romania's central bank (BNR) in mid-May increased its inflation projection for 2024 to 4.9% from the 4.7% forecast in February, citing a slowdown in disinflation partly due to high wage pressures (demand-side factors).</p>

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

<p><em>(Photo source: <a href="https://www.dreamstime.com/" rel="noopener" target="_blank">Nuthawut Somsuk/Dreamstime.com</a>)</em></p>