The domestic producer price index increased by 56.0% compared to July 2021. By definition, a similar growth of over 50% is hyperinflation. Price growth was registered in: the production and distribution of electricity and heat energy and gas – by 101.6%, the processing industry – by 31.4%, and the mining industry – by 4.7%.
The growth of production prices compared to the previous month is as much as 8%.
Compared to July 2021, a significant increase in prices in the processing industry was recorded for: the production of chemical products – by 66.9%, the production of wood and its products, excluding furniture – by 56.8%, the production of products from other non-metallic mineral raw materials – with 31.3%, and the production of food products – with 29.2%.
In the general producer price index, which measures the values of both the domestic and foreign markets, the increase was 42.5% on an annual basis. The increase was 3.8% in July 2022 compared to the previous month.
The growth of producer prices is a key indicator of economists for forecasting of consumer price inflation. The actual raised production prices are reflected in the retail market within months and initiate a serious increase in prices in all spheres of life.
In July 2022, monthly consumer inflation jumped 17.3% year-on-year. The biggest increase is in the prices of transport /31.4%/, food products and soft drinks /24.2%/, housing and utility bills such as gas, electricity, water /21.4%/, restaurants and hotels /20 %/.