According to the report from the National Institute of Statistics (ISTAT), producer prices fell by 0.9% in November, partially offsetting the October increase (+1.5%). Economists had expected prices to rise by 0.5%. Industrial producer prices decreased by 1.2% on the domestic market and by 0.2% on the non-domestic market.
Meanwhile, in annual terms, the decline in producer prices accelerated to 12.6% from 9.5% in October. This was the eighth price drop in a row, mainly due to the continued downward trend in energy. Consensus estimates suggested an 11.4% decline. Industrial producer prices decreased by 16.3% on the domestic market and by 1.2% on the non-domestic market.
In the three-month period (through November), producer prices increased by 1.6% compared to the previous three months, helped by higher prices on the domestic market (+2.4%). On the other hand, producer prices on the non-domestic market decreased slightly (-0.3%).
ISTAT said that in November, construction producer prices of residential and non-residential buildings remained unchanged on a monthly basis and increased by 0.2% on an annual basis; construction producer prices of roads and railways increased by 0.1% compared with the previous month and on an annual basis. The cost of energy fell by 34.5% per annum, and the cost of intermediate goods decreased by 6.5% per annum. Meanwhile, the prices of consumer goods increased by 2.7% per annum, and the cost of capital goods rose by 1.5% per annum.