A quick note on wholesale prices for January-February 2012.
Per CSO:
Yoy, the most significant contributions to prices changes were in
Yoy, Building and Construction All materials prices increased by 1.7% in the year since February 2011. The most notable yearly changes were increases in Insulating materials (+10.1%), Other timber excluding windows and doors (+9.7%) and Concrete blocks and bricks (+7.8%) while there were decreases in Sand and gravel (-9.4%), PVC pipes and fittings (-7.8%) and Other steel products excluding structural steel and
reinforcing metal (-2.3%). Building and Construction All material prices increased by 0.1% in the month. This suggests that there is no significant signs of uptick in building & construction sector, but there is some ongoing inflation feed-through in heavily subsidized insulation and refitting activity.
Year on year, the price of Capital Goods increased by 0.7%, while the monthly price index increased by 0.1%. Again, spare capacity in the sector relating to investment continues to run against the lack of demand.
The core driver of all price hikes, is most likely energy cost, feeding through a lag. Price of Energy products rose 3.9% in the year since February 2011, and Petroleum fuels increased by 10.3%. In February 2012, the monthly price indices for both energy-related categories decreased by 0.1%.
Per CSO:
- Monthly factory gate prices declined by 0.6% in February 2012 mom against a decrease of 0.2% recorded for February 2011. Annual prices rose 2.3% in February 2012, compared with an increase of 2.7% in the year to January 2012.
- Price index for export sales decreased by 0.9% mom while the index for domestic (CSO calls it 'home') sales rose 0.3%.
- Yoy there was an increase of 1.9% in the price index for export sales (CSO notes, correctly, that this index can be influenced by currency fluctuations) and an increase of 3.7% in respect of the price index for home sales.
- So domestic factory gate inflation is outstripping exports sales. The summary below explains.
- Other food products including bread and confectionary (+2.1%),
- Electrical equipment (+1.5%) and
- Other non-metallic mineral products (+0.4%),
- Computer, electronic and optical products (-2.0%),
- Basic pharmaceutical products and pharmaceutical preparations (-1.4%) and
- Chemicals and chemical products (-1.1%).
Yoy, the most significant contributions to prices changes were in
- Meat and meat products (+7.8%),
- Other food products including bread and confectionary (+4.9%) and
- Computer, electronic and optical products (+3.3%),
- Electrical equipment (-3.2%),
- Furniture (-2.3%) and
- Basic pharmaceutical products and pharmaceutical preparations (-1.7%).
Yoy, Building and Construction All materials prices increased by 1.7% in the year since February 2011. The most notable yearly changes were increases in Insulating materials (+10.1%), Other timber excluding windows and doors (+9.7%) and Concrete blocks and bricks (+7.8%) while there were decreases in Sand and gravel (-9.4%), PVC pipes and fittings (-7.8%) and Other steel products excluding structural steel and
reinforcing metal (-2.3%). Building and Construction All material prices increased by 0.1% in the month. This suggests that there is no significant signs of uptick in building & construction sector, but there is some ongoing inflation feed-through in heavily subsidized insulation and refitting activity.
Year on year, the price of Capital Goods increased by 0.7%, while the monthly price index increased by 0.1%. Again, spare capacity in the sector relating to investment continues to run against the lack of demand.
The core driver of all price hikes, is most likely energy cost, feeding through a lag. Price of Energy products rose 3.9% in the year since February 2011, and Petroleum fuels increased by 10.3%. In February 2012, the monthly price indices for both energy-related categories decreased by 0.1%.
