Industrial inflation registers a record drop in 47 years (-10%) in August due to the lower cost of gas

MADRID, 25 Sep. (EUROPA PRESS) -

Industrial prices decreased by 10% in August compared to the same month in 2022, a rate almost 1.5 points lower than that registered in July and the most pronounced since the beginning of the series, in 1976, as reported this Monday by the Institute National Statistics Office (INE).

With the year-on-year decrease in August, inflation in the industrial sector is now experiencing six months of negative rates after in March it put an end to a period of 26 consecutive months of increases, in which it recorded double-digit positive rates for more than 20 months.

The decline in industrial prices recorded in August is due to the fall experienced by energy, which cut its rate by 2.5 points, to -29.3%, due to the lower cost of gas production and the fact that that the prices for the production, transportation and distribution of electrical energy rose less in August of this year than in the same month of 2022.

On the other hand, oil refining prices increased in August of this year compared to the decline they experienced in the same month of 2022.

The fall in industrial inflation in August was also influenced by non-durable consumer goods, which cut their interannual rate by two tenths, to 10.2%, due to the cheaper processing and preservation of meat. On the other hand, the rise in the prices of the manufacture of vegetable oils and fats stood out.

According to the INE, excluding energy, industrial prices showed a year-on-year increase of 1.7% last August, a figure one tenth lower than that of July and more than 11 points higher than the general rate.

By activities, the largest price decreases compared to August 2022 occurred in the supply of electricity and gas (-35.5%); coke plants and oil refining (-14.9%), and in metallurgy (-13.8%).

In contrast, the largest year-on-year increases were recorded in the manufacturing of beverages (9.8%); the food industry (9.2%) and in the manufacture of other non-metallic mineral products (9.1%).

INDUSTRIAL PRICES RISE BY 1.2% IN THE MONTH

In monthly rate (August over July), industrial prices rose 1.2%, their largest monthly increase since last February, when they increased 2.3%.

Energy was the driving sector of this monthly rise in industrial prices, registering an increase of 3.7%, due to the higher cost of oil refining and the production of electrical energy.

At the same time, non-durable consumer goods increased their prices by 0.7% in August compared to the previous month due to the increase in the cost of manufacturing vegetable and animal oils and fats.

On the other hand, intermediate goods reduced their prices by 0.4% in the eighth month of the year due to the lower prices of the manufacture of basic iron products and the production of precious metals.

The activities where prices increased the most in a monthly rate and that had the greatest impact were oil refining (13.4%); the production and transportation of electrical energy (1.9%); the manufacture of vegetable and animal oils and fats (6.6%), and the manufacture of other food products (0.8%).

For its part, the most pronounced monthly price declines and with the greatest impact on the index were recorded by gas production (-5.5%); the production of precious metals (-1.9%); the manufacture of basic iron products (-1.4%); meat processing and preservation (-0.4%); the manufacture of animal feed products (-0.9%), and the manufacture of paper and cardboard (-2.5%).

NEGATIVE RATES IN ALL COMMUNITIES

The annual rate of the industrial price index decreased in August in 14 autonomous communities and increased in three, according to Statistics.

The largest decreases compared to the July rate occurred in Madrid, the Balearic Islands and Castilla y León, whose interannual rates fell 6.4; 5.5 and 4.5 points, respectively.

The three regions where the annual rate of industrial prices increased were Andalusia, Murcia and Castilla-La Mancha, with increases of 3.7; 3.4 and 1.4 points, respectively.

At the end of August, all communities had negative industrial price rates. The most pronounced were those of the Balearic Islands (-24.6%) and Asturias (-23.7%).