The National Confederation of Women Entrepreneurship (CONAF) warns that energy and commodity prices continue to rise, and recently released statistics do not yet capture the effects of Russia’s invasion of Ukraine, according to a statement.

This is also the case with the evolution of the Industrial Production Price Index in February. In February, industrial production prices increased by 1.6% compared to January 2022, and by 43.8% compared to the same month of last year.

“The industrial price index slowed its growth in February compared to the previous month, but statistics do not show the tension in the energy market caused by the Russian invasion, which began towards the end of the month. The evolution of the industrial production price index is a warning for the near future,” said Cristina Chiriac, president of CONAF.

Industrial production prices have been under increasing pressure since the summer of last year, when the effects of the coronavirus pandemic were felt in blockages in international freight transport, she noted.

“Entrepreneurs have been facing sustained price increases since the spring of last year, when blockages in international freight transport have affected costs. However, Russia’s invasion of Ukraine has intensified the volatility of oil and natural gas prices, increasing production costs. The war in Ukraine simply threw gasoline on a smoldering fire. We still don’t know how and when the prices of energy, or commodities in the industry, will calm down,” said Cristina Chiriac, according to Agerpres.

CONAF estimates that many small and medium-sized companies will go through a difficult period due to higher energy and raw material prices.

In addition, high production costs, reflected in the Industrial Price Index, signal an inflationary surge. However, the history of the financial crisis that began in 2008 shows that many companies have not fully transferred to consumers the increase in production costs, so as not to lose their market. Of course, the costs not offset by the selling prices were covered either by profit or by loans.

“Today’s data on the rise in industrial prices is a warning for the coming months, when the effects of the war in Ukraine, sanctions on Russia and its companies, in parallel with rising prices for metals, energy and raw materials in general, will worsen,” Cristina Chiriac also said.