Producer prices down by 2.3%. Weigh the drop in energy

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In May 2023, as reported by Istat, industrial production prices decreased by 2.3% on a monthly basis and by 4.3% on an annual basis.

On the domestic market, prices decreased by 3.1% compared to April and by 6.8% on an annual basis (from -3.5% in the previous month). Excluding the energy sector, prices fell by 0.5% on a monthly basis and recorded a slowing growth trend (+2.8%, from +4.4% in April).

On the foreign market, prices remain stable on a monthly basis (-0.2% euro area, +0.2% non-euro area) and show an increase on an annual basis of 2.1% (+1.3% euro area, + 2.7% non-euro area).

In the March-May 2023 quarter, compared to the previous quarter, industrial production prices decreased by 8.5%. The negative economic downturn is very large on the domestic market (-11.2%), modest on the foreign market (-0.1%). In May 2023, among the manufacturing activities, the most marked trend increases concern computers, electronic and optical products (+7.1% in the euro area, +11.6% in the non-euro area), textile industries, clothing, leather and accessories (+8.5% domestic market), food, beverage and tobacco industries (+7.3% domestic market, +7.5% euro area, +8.2% non-euro area) and means of transport (+7 .9% non-euro area). Declining trends on all three markets are seen for coke and refined petroleum products (-15.8% domestic market, -2.8% euro area, -17.7% non-euro area) and metallurgy and manufacturing of metal products (-6.3% domestic, -11.7% euro area, -9.1% non-euro area). On the domestic market, the downward trend in prices for extractive activities (-45.6%) and the supply of electricity and gas (-27.4%) further widens.

Manufacturing prices on average fell by 0.6% but on an annual basis they still grew by more than one percentage point, due to the effect of widespread progress in almost all sectors with the exception of metallurgy. In any case, the landslide compared to the previous data is clearly visible.