A competition of lower prices in crop production and higher prices of animal production affects the agriculture

Industrial producer prices for the domestic market again increased more rapidly. Even the sharp drop in producer prices in crop production could not cover still high rate of increase in prices of animal products, therefore the average prices of agricultural products continued to increase slightly.

Industrial producer prices for the domestic market were by 17.1% higher year-on-year in May 2023 and fell by 1.9% month-on-month. As for the 16 monitored sectors of industry, prices were higher year-on-year in 12, and prices declined year-on-year in 4 sectors. Similar to the previous months, high increase in producer prices in the supply of electricity and gas by 46% mainly influenced the overall result. In the most important sectors of industrial production, prices mainly rose year-on-year in manufacture of transport equipment by 4.1% and in manufacture of rubber and plastic products by 16.8%. On the contrary, prices decreased year-on-year in manufacture of metals and fabricated metal products by almost 10%, in manufacture of petroleum products by 30.6% and in manufacture of chemicals and chemical products by 19.8%. In total, for the first five months of 2023, industrial producer prices for the domestic market increased by 24.1%.

Industrial producer prices for the non-domestic market rose year-on-year by 3.5%, they increased month-on-month by 0.2%. In total, for the first five months of 2023, industrial producer prices for the non-domestic market were by 8% higher than a year ago.

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Producer prices of agricultural products

In May, prices of agricultural products increased year-on-year by 3.8%, the growth rate has significantly slowed since the beginning of the year. This is due to still dynamic growth in prices of animal products, which recorded higher producer prices year-on-year by 21.1%. In particular, prices of hen edible eggs increased by 57% and raw cow milk by almost 21%. The overall price growth in primary agricultural production was slowed down by a year-on-year decline in prices of crop production, which has been continued for the second month. In May, their prices decreased year-on-year by 19.1%, mainly due to a drop in cereal prices by a quarter.

In total, since the beginning of the year, prices of agricultural products increased by an average of 18.7%, of which crop products by 7.3% and animal products by 30.3%.

Producer prices in construction

Prices of construction works increased year-on-year by 13.2%, month-on-month by 0.3%, in May. In total, for the first five months of 2023, construction work increased year-on-year by 15.4%.

Prices of construction materials increased year-on-year by 2.5%, compared to April 2023 they increased by 0.2%. In total, since the beginning of the year, a year-on-year growth reached 8.3%.