Prices expected to continue increasing as inflation hits new highs

The annual rate of inflation hit 3.88 per cent in January, while the industrial producer price index, a key marker of future expected price increases, hit 6.4 per cent over the previous month.

According to new figures released by the National Statistics Office (NSO), the year-on-year retail price index increased from 2.59 per cent in December 2021, while the 12-month moving average rate for January stood at 1.79 per cent.

The largest upward impact on annual inflation was measured in the food index.

Meanwhile, when compared to January 2021, the industrial producer price index increased by 6.4 per cent. The highest increase was registered in the intermediate goods (10.28 per cent) followed by consumer goods (5.14 per cent) and capital goods (4.20 per cent). There were no price changes in the energy sector.

Industrial producer prices for the domestic market increased by 5.18 per cent. Price rises were recorded in capital goods (19.07 per cent), intermediate goods (10.33 per cent) and consumer goods (4.04 per cent).

Non-domestic prices increased by 7.18 per cent. Prices within the non-euro area rose by 7.57 per cent while those within the euro area increased by 6.42 per cent.

During January 2022, the industrial producer price index increased by 0.73 per cent when compared to December 2021. Intermediate goods and consumer goods rose by 1.80 per cent and 0.66 per cent respectively.

Capital goods declined by 1.62 per cent. There were no price changes in the energy sector.

Domestic market prices increased by 1.6 per cent due to rises in intermediate goods (4.33 per cent), consumer goods (1.62 per cent) and capital goods (0.80 per cent).

Non-domestic market prices increased by 0.20 per cent. An increase of 0.79 per cent was recorded in the noneuro area while a drop of 0.98 per cent was registered in the euro area.