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>\n
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.\u00a0<\/p>\n
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 \u2013 figures close to those seen in March.<\/p>\n
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>\n
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>\n