Soft print masks firmer pricing in consumer goods
Czech industrial producer prices fell 0.2% month-on-month and 0.7% year-on-year in June, coming in below market expectations. Agricultural producer prices declined by 0.1% MoM, yet were 13.4% above the previous year. Prices of construction work shed 0.3% MoM but gained 2.9% annually. Prices of market services for businesses declined by 0.1% MoM and were 4.2% higher on a yearly basis.
Industrial prices have been falling for five consecutive months, as of June, both in the monthly and yearly comparisons. When assessed by the major industry groups, energy prices dropped 5.4% YoY, acting as a major drag. Meanwhile, prices of durable and non-durable goods gained 2.7% each from the previous year, and prices of capital goods added 1.7% YoY. Industrial producer prices excluding energy added 1.4% YoY in June.
The overall reading of production pricing can be assessed as rather soft, with somewhat milder pricing in the construction and services sectors providing some relief when it comes to the accumulated price pressures. Nevertheless, the weaker headline figures in industry and agriculture carry mixed signals when examining the structure. Both the price dynamics of non-durable and durable consumer goods continued to pick up in June within the industrial segment. Considering pricing in agriculture, the headline index was dragged down solely by crop production, contrasting with the price dynamics of animal products, which gained strength in both monthly and annual terms
