Energy drives the fall in producer prices

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They go down, but not too much. If at first reading the trend in producer prices shows a large decline, comforting due to a reduction in inflationary tensions, it should be noted that the averages are in reality strongly influenced by energy. At a global level, in fact, Istat recorded a decrease of 1.7% on a monthly basis and 10.7% on an annual basis for January (it was -16.0% in December). However, this is once again an unbalanced result, because net of the energy sector, manufacturing prices actually decreased by 0.1% in economic terms and by 2.1% in trend terms (it was -1.5% in December ).

If energy is in fact clearly falling, a reduction of more than 30% in the annual comparison linked to the relative collapse of gas and electricity prices, elsewhere the picture is different, with consumer goods and durable goods actually increasing their values ​​in comparison with the same month of 2023.

Among the manufacturing price lists, we find the productions with the highest energy content to give way, areas among other things in which, precisely as a result of the 2022 crisis, many contracts have been linked with more or less direct automatic mechanisms to the reference indices of gas and electric energy. Thus, the prices of chemicals, wood-paper and metallurgy-foundries are clearly decreasing, with drops of between 5 and 9%. Elsewhere, however, tensions have not been completely reduced and the upward drag effects continue. It happens, for example, to machinery and electronics, or even to textiles-clothing and pharmaceuticals. While in the food sector the reduction is barely mentioned, with a drop of two decimals compared to December, and of half a point compared to January 2023.

The road to an easing of tensions is therefore still partly to be covered and if when we go to supermarkets we don’t see large reductions in price lists it’s because in fact these aren’t there yet.



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