Eurozone producer inflation jumps to 8.2% in August

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

The spike was largely driven by energy prices, which climbed 21% year-over-year and 5.6% from July. Excluding energy, industrial producer prices in the euro area increased 3.4% annually and 0.2% monthly.

Prices for intermediate goods rose 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 EU, industrial producer prices increased 8% annually in August, up from 5.6% in July, with a monthly increase of 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%.