Production prices were decreased throughout 2019
Production prices fell again in the last quarter of the year, indicating that inflationary pressures on the economy are expected to be low even in the near horizon. According to Instat, the producer price index it measured declined 1.1% year-on-year. The annual change in output prices remained at negative values throughout 2019, which is a further signal that the return of inflation will be even more difficult than anticipated.
The Producer Price Index measures the prices of domestic products at the first level of trading or the price at which they are marketed by producers. It is an important indicator of the expected performance of consumer prices. The fall in production prices was generally in line with the significant reduction in inflation, which for 2014 was 1.4%, from 2% a year earlier.
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