Slovak industrial producer prices decline in 2024, while farmers and construction see varied trends

Industrial producers maintained a downward trend in prices in December 2024, closing the year with a significant year-on-year decline. Meanwhile, agricultural producers saw their prices rise for the third consecutive month, and construction firms posted moderate price increases for services, though material costs fell slightly.

Industrial Producer Prices: A Steep Decline in 2024

Industrial producer prices for the domestic market in December 2024 were 7.1% lower compared to the same month in 2023. Among the 16 industrial sectors, only five recorded price decreases, but the significant drop in energy prices—by more than 19%—was enough to drive the overall decline in average industrial prices. On a month-to-month basis, however, prices rose by 1.3%.

For the full year, industrial producer prices for the domestic market fell by an average of 10.1%. This decrease was reflected in 10 of the 16 sectors, with electricity, gas, and steam supply experiencing a sharp 22% reduction. Other notable declines included prices in the manufacture of coke and refined petroleum products (down 5%), the wood and paper industries, the chemical sector, and the manufacture of computers and electronics.

In contrast, industrial producer prices for the non-domestic market saw a slight year-on-year increase of 0.6% in December. Month-on-month, these prices rose by 0.1%. However, on average for 2024, prices in this segment were 1.1% lower compared to 2023.

Agricultural Product Prices: Rising but Slowing Growth

Agricultural prices continued their upward trajectory in December 2024, with farmers selling products at prices 4.7% higher than in December 2023. Crop product prices rose by 2.8% year-on-year, driven by cereals (+12.9%), legumes (+21.9%), and oilseeds and fruits (+15.4%). However, some segments experienced declines, with vegetable prices dropping by 15.9% and potatoes by 8.9%.

Prices for animal products increased by 8.1% in December, with notable rises in slaughter cattle and hen eggs (both over 10%) and cow’s milk (+6.7%).

For the full year, agricultural product prices declined by 3.4%, with crop product prices falling 5.1% and animal product prices decreasing by 0.9%. Cereals saw a significant price reduction of over 10%, while legumes experienced a more moderate decline. Conversely, vegetables and potatoes saw price increases of more than 10% over the year. Livestock products like milk, sheep’s wool, and eggs experienced price decreases for most of the year, though egg prices surged sharply in the final months of 2024. Prices for slaughter cattle, pigs, sheep, and fish rose compared to 2023.

Construction Prices: Moderate Increases

Prices for construction work rose by 4.1% year-on-year in December 2024, the lowest growth rate since mid-2021. On a month-to-month basis, prices increased by 0.7%. For the entire year, construction work prices rose by 5.4%.

Material prices used in construction showed a slight upward trend in December, increasing by 0.8% compared to November and 2% year-on-year. However, for the whole of 2024, material prices declined by 0.6% on average.

Key Takeaways

2024 was marked by significant declines in industrial producer prices, especially in energy and manufacturing sectors, reflecting broader global trends in supply chain adjustments and energy markets. In agriculture, prices displayed mixed dynamics, with certain sectors such as cereals and legumes experiencing sharp declines, while others like vegetables and livestock products saw gains. Construction prices remained stable, with modest increases for services offset by slight reductions in material costs.

As these trends develop into 2025, the interplay between global economic conditions, local market dynamics, and sector-specific factors will likely shape the trajectory of prices across these industries.

Source: Statistical Office of the SR