Although the energy prices remained in June just under the record reached in March, the overall industrial price index reached a new maximum – and it is still expected to advance, at least as a result of the energy prices passing through into investment or consumer goods.
On an annual basis, the energy prices surged by 139.6% y/y, while the prices of durable and non-durable consumer goods rose by 18% y/y and 16% y/y respectively. The prices of capital goods rose by only 10% y/y.
Overall, industrial prices increased by 48% y/y as of June, remaining close to the 50% y/y level for the fourth month in a row.
Consumer price inflation hit 15% in June and is expected to remain in the double-digit area at least by mid-2023.
Compared to the first month of 2020, before the pandemics, energy prices surged by 152% (2.5 times) while the prices of durable/non-durable consumer goods rose by only 26% and 23% respectively.
This best illustrates the tensions accumulated along the production chain, tensions likely to partially translate into higher (consumer or investment) end-user prices. To some extent, however, the industry will have to accept higher relative energy prices and share the burden with the end-users.