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Industrial prices fall 1.7% due to energy and will take pressure off the CPI

Date: February 7, 2023 Time: 20:32:11

Industrial prices evolved downward in December, the rate fell by 1.7% compared to November, according to the latest index published this Wednesday by the INE. Energy is the main responsible for this result, since its prices have evolved downward compared to November. The rate has stood at 4.8%, which also represents a cut of 15 points compared to the same period of the previous year, thanks to the decrease in the costs of production, transport and distribution of electrical energy. The price of oil refining has also fallen more than in 2022, although, contrary to what happened then, the costs associated with gas have increased.

The prices of intermediate goods have also fallen by a little more than one point compared to the data for November, something that the institute justifies in the drop in the manufacturing prices of chemical products, fertilizers, plastics, rubber and iron and steel products. These two decreases will be transferred to the evolution of the CPI, which in December stood at 5.7%, marking the lowest figure in the entire euro area. However, the effects of the drop in industrial prices are not immediately reflected in consumption, so the consequences will be more noticeable in the coming months.

Non-durable consumer goods, on the other hand, experienced a rise of 0.8% in December compared to the penultimate month of the coming year due to the rise in the production costs of the manufacture of oils, vegetable and animal fats and in to a lesser extent, dairy products. As announced at the beginning of January, the prices of food and non-alcoholic beverages also increased this month, but in this case they did so by four tenths compared to November, with oils, fats and dairy as the main culprits.

The annual rate of the Industrial Price Index has evolved downward throughout the territory, although the greatest falls have been registered in the Balearic Islands, the Canary Islands and the Principality of Asturias, where prices have decreased by more than ten points. Although it is noteworthy that in Andalusia the upward trend moderates substantially, since it goes from being in the On the contrary, in La Rioja, Catalonia and Navarra prices have contracted to a lesser extent, in the first case of just over a point.

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.
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