Product prices at factory gate rose 0.4% in the European Union (EU) and 0.6% in the euro area in July 2020 compared to the previous month, according to data released by Eurostat.
The Member States where industrial production prices registered the lowest advance are: the Czech Republic (0.1%), Germany, Austria and Poland (all by 0.2%) and Romania, where industrial production prices increased by 0.3% in July, after an increase of 0.8% in June.
On the other hand, July 2020 compared to July 2019, in Romania the prices of industrial production registered a more modest decrease than in the euro or EU area. While in Romania the prices of industrial production decreased by 1%, in the euro area they decreased by 3.3%, and in the EU they decreased by 3%. Industrial production prices have fallen in most Member States on an annual basis, but Romania is among the member states with the lowest declines, along with the Czech Republic (minus 0.1%), Hungary (minus 0.3%), Bulgaria (minus 0.7%) and Luxembourg (minus 0.8%), according to Agerpres.
Producer prices are an important factor influencing inflation, which the European Central Bank wants to keep below, but close to 2% in the medium term. Any change in prices at factory gates has an impact on final costs for consumers.