Producer prices less volatile in 2024
Today, we continue the topic of price developments, with a focus on industrial producer prices. Following the turbulent years of 2022 and 2023, 2024 has been significantly calmer regarding the volatility of the Producer Price Index (PPI). Since January, the PPI has remained nearly constant in Czechia, Poland, and Slovenia. Specifically in Poland and Czechia, the index has fluctuated by no more than 1% in absolute terms since the beginning of the year. On the other hand, Romania, Croatia, and Slovakia experienced a decline in PPI at the start of the year, but producer prices have since returned to levels closer to those observed in January. The only two countries in CEE where the PPI has increased since the start of the year are Serbia (+1.1%) and Hungary (+2.6%). The stability in PPI developments suggests a more favorable outlook for consumer inflation, as producer prices are a reliable leading indicator of the CPI. However, current global events, such as tensions in the Middle East, could put upward pressure on the PPI once again.