Lower producer prices registered

The December industrial producer price index went down by 0.4 per cent compared to the previous month and by 9.1 per cent compared to the same month the previous year, according to provisional estimates compiled by the National Statistics Office.

The NSO said the decline was mainly due to lower prices in the domestic and total export markets, by 0.7 and 0.2 per cent respectively.

Producer prices for the domestic market decreased by 0.7 per cent on account of price drops in the capital goods (-0.4 per cent), consumer non-durables (-0.2 per cent) and intermediate goods (-6.4 per cent) sectors. No change in producer prices was observed in the consumer durables and energy sectors.

The total export market registered a 0.2 per cent decline in producer prices, mainly on account of lower producer prices in the euro area. This decline was essentially due to a 0.3 per cent drop in prices in the intermediate goods sector.

Producer prices for the non-euro area rose marginally by 0.1 per cent, due to increases in prices for capital and intermediate goods. The consumer durables and non-durables sectors did not register any price variations.

Producer prices for total industry for December fell by 9.1 per cent, from 103.0 points in December 2008. This was the result of a drop in producer prices for capital goods, energy, and intermediate goods, of 1.4, 10.4 and 10.5 per cent respectively.

This decline was partly mitigated by an increase in prices for consumer durables and non-durables, both sectors increasing by 0.1 per cent.

Year-on-year, producer prices within the domestic market fell by 8.8 per cent as a result of producer price declines in capital goods (-16.2 per cent), energy (-10.4 per cent) and intermediate goods (-9.2 per cent).

Consumer durables and non-durables prices rose by 0.5 and 2.0 per cent, respectively.

Producer prices for total exports were down by 9.2 per cent, mainly on account of a 9.9 per cent decline in prices within the euro area. Overall, the non-euro area decreased by 1.9 per cent when compared to December 2008.