Industrial prices in July edged down by 8.4 percent from the same month last year, a softer drop than June by four tenths of a point. The decline stems from cheaper electric power and a slower pace of gas production, according to national statistics. In this period, the energy sector was a major force behind a lower overall price level for industry as producers benefited from reduced costs for utilities and fuel supplies. [Attribution: National Institute of Statistics]
Across the year, the industrial sector has seen inflation slip into negative territory for the seventh consecutive month. This follows a lengthy stretch of falling prices and a prior period of double-digit increases spanning more than twenty months. The shift signals a realignment in the price structure faced by manufacturers and distributors, reflecting changes in input and output costs and how they interact within the supply chain. [Attribution: National Institute of Statistics]
In July, energy goods exhibited notable price declines, with the annual rate dropping to minus 26.2 percent, four tenths lower than the previous year. The slowdown was driven by tempered gas production growth and a drop in electricity generation and distribution costs. In contrast, refined oil prices rose compared with a year earlier, highlighting mixed dynamics within the energy complex as year-over-year movements create divergent outcomes for selected refined products. [Attribution: National Institute of Statistics]
Within intermediate goods, the cooling extended to chemicals, where the year-over-year rate eased to minus 5.7 percent as manufacturing costs eased. Capital goods, including engines used in vehicles, also retreated, slipping to 2.6 percent as cheaper inputs flowed through to the equipment sector. These movements illustrate how different segments of the industrial basket respond to shifts in energy costs, raw material availability, and production efficiency metrics. [Attribution: National Institute of Statistics]
From a month-to-month perspective, July rose slightly relative to June, up 0.1 percent. The gain was eight-tenths below the prior month, when a broader recovery produced a 0.9 percent increase in prices. Seasonal patterns and upstream cost dynamics contributed to the softer monthly momentum, while a modest positive trajectory remained for the overall price level in July. [Attribution: National Institute of Statistics]
Energy continues to drive the monthly revival in several industrial segments, with overall industrial prices advancing by 0.9 percent in July. This uptick aligns with higher costs in oil refining and fluctuations in gas production. The energy sector thus remains a pivotal factor in price dynamics, shaping the inflation path across the industrial landscape and influencing purchasing power for businesses throughout the sector. [Attribution: National Institute of Statistics]