Producer prices in March continued to rise

Producer prices in March 2011 continued to rise, even at a slower pace, according to figures from the National Statistics Institute (NSI). Producer inflation was 13.5 percent on an annual basis (compared to March 2010) and 1% on monthly basis. In February, the figures were respectively 13.8% and 1.6%. The values are now close to those before the crisis. But now the engine of appreciation are the high prices of energy resources and raw materials, before the crisis it was much more active domestic demand. If manufacturing inflation remained at these levels for a longer period of time, threatens to carry on consumer prices, which in tight incomes will shrink consumption and may be brakeman for economic recovery.

Source: Dnevnik