Early signs of a price decline in industry

Early signs of a price decline in industry

The industrial imports price index recorded a decrease in February 2023 – for the first time since January 2021 – on an annual basis, while a decline was also recorded on a monthly basis.

This element is essentially an indication of price de-escalation, mainly in energy and to a lesser degree in some primary and secondary materials, such as basic metals and paper.

On the other hand, the export and import price indices in agriculture and livestock farming continue their upward trend, which translates into a continuation of very high food prices, but also a continuation of revaluations – even if with less intensity compared to 2022 – in this category of goods.

According to the data announced on Friday by the Hellenic Statistical Authority (ELSTAT), the general index of import prices in industry fell 5.6% in February 2023 compared to February 2022.

A decline on an annual basis was recorded from January 2021 (-4.8%), while since then the index has shown a large increase due to the restart of the economy after the extensive worldwide lockdowns in 2020. The disruptions in the operation of production units and transport due to the lockdowns in 2020 contributed decisively to the skyrocketing of this index.

On an annual basis, individual price reductions are observed only in crude oil-natural gas (22.4%) and petroleum products (9.5%). On a monthly basis, the index fell by 3.4%, with partial decreases observed in the import prices of crude oil-natural gas (9.2%), electricity (4.3%), petroleum products (3%), basic metals (1.9%), paper (1.6%) and chemicals products (0.2%).

In contrast, the general price index of imports to agriculture-livestock increased in February 2023 by 11.3% compared to a year ago and by 2.1% compared to January 2023.

The largest price increases on a monthly basis were observed in energy and lubricants (7.1%), while on an annual basis it was in fertilizers (35.6%).

An increase in the import price index results in an increase in the export price index – i.e. the prices of the products produced in the primary sector. The general output price index increased on an annual basis by 20.5% and on a monthly basis by 1.9%. The biggest increase, 42.8%, was recorded in the price of olive oil and on a monthly basis in the price of vegetables (11%).

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