The study analyses the impact of energy price increases and of shortages in the supply of inputs on producer prices and production in the Italian industrial sector since 2021. It formulates price and production indices on the basis of the energy intensity of the different subsectors and it examines the indications provided by the Bank of Italy's Business Outlook Survey of Industrial and Service Firms.
Since the beginning of 2021, the producer prices of industrial goods have grown more in energy-intensive sectors than in non-energy-intensive sectors, although trends in industrial production only began to differ between the two groups starting from the spring of 2022. The responses to the survey indicate that a high proportion of firms have revised the prices of their goods upwards in response to energy price increases, while only a limited percentage of firms have reduced production.
