Aug. 4 (Bloomberg) -- Romanian producer prices, an early gauge of inflation, rose at the fastest pace in more than 3 ½ years as energy prices increased and a weaker local currency boosted the cost of imports.

The cost of goods produced in factories and mines rose an annual 19.4 percent in June, compared with 16.8 percent in May, the fastest pace since October of 2004, the Bucharest-based National Statistics Institute said in an e-mail today. Prices grew 2.1 percent on the month, after rising 1.7 percent in May.

Consumer prices are rising worldwide, boosted by food and oil prices and pushing central banks to raise interest rates. Romania's inflation rate in June equaled a two-year high as a weakening currency exacerbated the global effects. The leu has lost almost 11 percent against the euro in the past year, making imports more expensive.

The Banca Nationala a Romaniei last week raised its main interest rate, the highest in the European Union, to 10.25 percent from 10 percent. Monetary policy makers have gradually raised the rate from 7 percent in September.

Prices of manufactured goods rose an annual 22.1 percent in June, compared with 19.6 percent in May, while price growth in the mining and drilling industries quickened to 17.8 percent from 11 percent. The costs of electricity, natural gas and water rose an average of 0.1 percent, compared with 3 percent in May, the statistics institute said.

To contact the reporter on this story: Adam Brown in Bucharest at abrown23@bloomberg.net

Last Updated: August 4, 2008 03:00 EDT