Analyst: Industrial Prices Down in September, But Growth Will Resume by Year-end

Bratislava, October 28 (TASR) - Prices in production fell in September due to weakening demand for production and lower or unchanged prices for goods that posted rapid growth in the past, but price growth will resume by the end of the year, stated 365.bank analyst Tomas Bohacek in his commentary on industrial producer prices for September released by the Statistics Office earlier on Monday. Industrial producers posted a significant drop in prices in September, mainly those engaged in the energy and oil-processing sectors. This trend was reflected in overall average prices of industrial products going down by 8.5 percent year-on-year. Price decreases were seen in several sectors, such as the production of food, means of transport and metals. Conversely, prices in the field of water supplies and in the production of rubber and plastics went up slightly. "The development of prices in the domestic processing sector mainly reflects price trends on commodity markets. Prices went down primarily due to a slowdown in demand for production (especially metals and means of transport), but also due to declines or stagnation in prices of goods that had grown more rapidly in the past," said Bohacek. Nevertheless, the downward trend won't last long, with upward pressure on the prices of production inputs set to intensify by the end of the year, stated the analyst, who sees the incorporation of increased taxes and costs for companies as the main reason for this. "Growth might occur as a result of a shortfall in domestic production in some commodities, such as eggs. This would increase the prices of other foodstuffs and strengthen pro-inflationary trends that are expected mainly in the first half of next year," explained Bohacek. ko/df