Industrial producer price index in January 2025 dipped 1.3% against that of January 2024, the National Statistics Office reported. The downtrend was brought about primarily due to declines in intermediate goods and capital goods whose prices decreased by 4.1% and 2.0% respectively. Consumer goods rose by 0.8%, while that of the energy sector remained flat.
The home market reflected a marginal increase of 0.4% in producer prices. Notably, consumer goods in this market posted a price gain of 1.2%, whereas intermediate and capital goods increased by 0.4%. In contrast, non-home market prices declined 3.0%, with products headed for non-euro countries decreasing 3.4% and those headed to euro countries decreasing 2.6%.
On a month-on-month basis, the overall industrial producer price index declined by 0.4% from December 2024 to January 2025. This was occasioned by a 1.1% drop in intermediate goods and a 0.3% drop in capital goods. The energy and consumer goods sectors saw no significant price changes within this period. Domestic market prices remained constant, but non-domestic market prices dropped by 0.8%, affecting both euro and non-euro area destinations.
These producer price variations are essential indicators of the economic environment, reflecting changes in supply and demand pressures across sectors. They are closely monitored by policymakers and businesses in making strategic choices and economic policy decisions.
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