Upward leap for producer prices
Rising oil prices are having a big impact on producer prices, according to data released yesterday by the National Statistics Service (NSS). The general Producer Price Index (PPI) grew at a 7.8 percent annual pace at the end of March, rising 0.6 percent over the previous month. The energy goods sub-index gained 14.2 percent, while perishable consumer goods gained 6.8 percent and capital goods just 1 percent. During the 12-month period ending in March 2005, the PPI had gained 4.7 percent while the previous year it had gained 2.1 percent. PPI inflation over the 12 months ending in March averaged 6.4 percent, compared to 4.5 percent and 1.3 percent in the previous 12-month periods. Energy-inefficient Greece – which consumes much more per unit of real GDP than other eurozone member states – suffers more from high oil prices. Yesterday, Bank of Greece Governor Nicholas Garganas produced data showing that the local industry’s competitiveness, based on labor costs, has declined 30 percent over the past five years.
