In March 2010, the industrial prices inflation is 1.3% compared to February. File Photo
Bulgarian producer prices in the industrial sector rose 5.2% in March on annual basis, National Statistical Institute (NSI) data showed on Friday.
On monthly base the inflation is 1.3% compared to February.
The most significant increases are registered in the production of metals with 36.2% and tobacco products – with 16.5% y/y.
On monthly basis - again the production of metals holds the inflation record with 2.1%, followed by the production of paper and cardboard - 1.3%. Meanwhile, mining and energy production register lower prices - down by 0.8% and 0.6% respectively.
Inflation per producer is considered one of the main indicators used to make economic forecasts. When prices go down – the most common reason is either lower price of raw material or less demand with the latter leading to shrinking of production and unemployment increase, When the other trend is observed – increase of producer prices, the reasons are higher raw materials costs or economic recovery.
In March, in particular, the data reflects the already low prices from March 2009 – in the first quarter of 2009 orders from abroad slumped and the industrial sector was hit hard by the crisis.