Eurozone producer inflation jumps to 82% highest since February 2023

Eurozone producer inflation surged to its highest level since February 2023, reaching 8.2% in August. This figure, released by Eurostat on Monday, surpassed market expectations of 8.1%. The annual increase accelerated from 5.8% in July, with producer prices rising 1.9% month-on-month, up from 1.6% the previous month.

Energy prices were the primary driver of this increase, climbing 21% year-on-year and 5.6% from July. Excluding energy, industrial producer prices in the euro area still rose 3.4% annually and 0.2% monthly.

Prices for intermediate goods increased 6.8% year-on-year, while capital goods and durable consumer goods saw increases of 2.6% and 3.4%, respectively. Non-durable consumer goods prices, however, fell 0.8%.

Across the wider European Union, industrial producer prices rose 8% annually in August, up from 5.6% in July. The monthly increase stood at 1.9%. Ireland recorded the largest annual rise among EU member states at 17.1%, followed by Bulgaria at 16.8% and Lithuania at 14.6%. Luxembourg was the only country to register an annual decline, with prices falling 7.9%. Bulgaria and Estonia posted the strongest monthly increases, both at 3.3%, followed by Italy at 3.1% and Denmark at 3%.