Euro Zone Factory Prices Surge 11.1 Percent, Highest Since 2023

(MENAFN) Industrial producer prices in the euro area climbed 11.1% year on year in September, driven by soaring energy costs, marking the steepest annual increase since February 2023, the EU statistical office said Thursday.

The reading topped market forecasts of 10.9% and marked a sharp acceleration from August’s 8.3% gain.

Month on month, producer prices rose 2.5%, up from a 2% increase the previous month.

Energy was the main driver. Energy producer prices leapt 30.8% from a year earlier, compared with 21% in August, and gained 7.8% on the month. Stripping out energy, producer prices rose a more modest 3.5% annually, barely changed from 3.4% in August.

Producer prices track what manufacturers earn on goods before they reach consumers, making them a gauge of inflationary pressure building along the supply chain. Companies may, however, absorb part of the increase instead of passing it on to customers.

Intermediate goods, which include materials and components used in manufacturing, rose 7.1% from a year ago. Prices for non-durable consumer goods slipped 0.6%.

EU-wide picture: Across the broader European Union, industrial producer prices advanced 10.9% annually, up from 8% in August, while monthly growth quickened to 2.6% from 1.9%. EU energy producer prices rose 30% on the year and 7.7% on the month.

Country breakdown: Bulgaria posted the biggest annual jump among member states at 22.9%, followed by Ireland at 19.9% and Lithuania at 19%. Luxembourg was the lone country to record an annual decline, with prices down 8.1%.

On a monthly basis, Bulgaria again led with a 4.6% increase, ahead of Lithuania at 4.2%. Greece and Spain each recorded 3.9%. Prices were flat in Luxembourg and Malta.

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