Increase in Production Prices in Bulgaria in August

In August, production prices in Bulgaria rise for the second consecutive month as their growth accelerates and on an annual basis, according to data from the National Statistical Institute, which is a prerequisite for a certain increase in inflationary pressure in the country.

The general producer price index in Bulgaria (PPI index) increased in August by 0.3% compared to July, when it increased by 1.3%. Higher prices were registered in the production and distribution of electricity - a jump of 2.2% and in the extractive industry - by 1.0%, while in the manufacturing industry a price decrease of 0.3% was reported.

On a year-on-year basis, the country's overall producer price index rose by 3.5% in August after rising 3.0% in July, and after only a 0.9% increase in June (the slightest rise in the manufacturer since November 2016).

The prices in the production and distribution of electricity, heat and gas registered a more significant increase of 11.8% compared to a year earlier, while in the mining and quarrying industry they increased by 5.4% and the manufacturing industry by 1.0% .

The producer price index on the domestic market in Bulgaria in August alone increased by 0.7% on a monthly basis and by 4.5% on an annual basis (compared to August 2018).

On the other hand, the producer price index on the international market decreased by 0.3% on a monthly basis and increased by 2.0% compared to August 2018.

Earlier this month, the NSI released a report reporting monthly consumer inflation in August of 0.1% and an increase of 2.9 percent from a year earlier for the second consecutive month.

Today's production price data is a prerequisite for some increase in consumer inflation in the coming months.