Producer prices in the euro zone are rising faster than ever, reports Handelsblatt. This signals the danger of a further inflation increase. According to Eurostat, producer prices for industrial products jumped 43.3% year-on-year in August. Energy prices are still the main driver of price growth.
Producer prices in Eurozone are growing at record pace, signaling the danger of further inflation increase. According to Eurostat, producer prices for industrial products rose 43.3% year-on-year in August, writes Handelsblatt.
As the newspaper notes, in July the increase in prices was 38%.
The cost of energy rose by 116.8% in August in annual terms. Excluding the cost of energy producer prices of industrial products rose by 14.5%.
The statistics show prices “from the factory gate” – even before products are further processed or sold. Thus, producer prices are an early indicator of the dynamics of consumer prices.
Against the backdrop of rising energy prices as a result of the conflict in Ukraine, inflation in the eurozone is reaching new record highs – according to the latest data, of 10%. The inflation rate is now five times the European Central Bank (ECB) target of 2%. ECB head Christine Lagarde said she would raise interest rates further in the fight against rising inflation. The eurozone’s benchmark interest rate currently stands at 1.25 percent, Handelsblatt reported.
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