September producer prices were up 6.9 % y-o-y (up 1 % m-o-m). Rising prices of raw material inputs, as well as prices in the extractive and metals industries, drove the pick-up in inflation. In contrast, the prices of consumer goods production rose by less than 1 % y-o-y. The rise in producer prices increases the nominal income of firms, thus providing a modicum of relief to indebted firms to service their debts.
September consumer price inflation slowed from 1.8 % in August to 1.6 % in September due to lower food prices. Core inflation, which excludes food and energy, accelerated moderately in September to 2.3 %.