The industrial price inflation reported by Romania’s statistics office INS posted the first negative reading in July (-0.9% y/y) after it peaked at over 50% y/y in July-August last year.

The prices of manufactured goods have already marked negative annual dynamics for the third month in a row, creating a broader deflationary context.

The industrial price index picked up in July (+0.56% m/m) driven by higher prices of utilities and mining, but the prices of manufactured goods continued their decline (-0.2% m/m, -2.4% y/y) seen since they peaked last July.

By category of goods, the prices of intermediary goods decreased by 2.3% y/y (-2.7% y/y in June), and the prices of non-durable consumer goods still increased by 11.1% y/y (+12.4% y/y in June).

The prices of durable consumer goods inflation already fell in the single-digit area: +5.8% y/y in July (+7.2% y/y in June), so the overall consumer price inflation dropped in July below 10% for the first time since the beginning of the war in Ukraine as well.

iulian@romania-insider.com

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