Tuesday, March 2, 2010

Romanian Producer-Price Growth Slows on Western Export Demand

By Adam Brown and Irina Savu

March 2 (Bloomberg) -- Romanian producer-price growth, an early indicator of inflation trends, slowed in January as a slow recovery in western Europe reduced demand for textiles, furniture, cars and other exports.

The cost of goods leaving mines and factories increased an annual 3.3 percent after rising 4.2 percent in December, the Bucharest-based National Statistics Institute said in an e-mail today. Prices advanced 1 percent on the month.

Producer prices of manufactured goods rose an annual 3.1 percent in January, compared with a gain of 4.4 percent in December, while prices of mined goods fell 1 percent, compared with a drop of 0.3 percent, the institute said.

East Europe’s recovery faltered in the fourth quarter, slowing gains in producer prices, as economic growth in Germany, a key investor and buyer of the region’s goods, unexpectedly stalled.

The Romanian inflation rate in January was 5.2 percent, because of an increase in tobacco taxes, the institute said last month.

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