Euro Zone Producer Prices Make Record Jump in September: Eurostat

Workers assemble campers astatine Knaus-Tabbert AG mill successful Jandelsbrunn adjacent Passau, Germany connected March 16, 2021. (Andreas Gebert/Reuters)

BRUSSELS—Euro portion shaper prices jumped successful September much than expected, driven by skyrocketing vigor costs, signaling their highest summation connected grounds successful a caller motion of beardown inflationary pressures successful the bloc, nationalist information showed connected Thursday.

The European Union’s statistic bureau Eurostat estimated that prices astatine mill gates successful the 19 countries sharing the euro roseate 2.7 percent month-on-month successful September for a 16.0 percent year-on-year jump, successful the biggest increases ever recorded for the bloc.

The leap besides exceeded expectations, arsenic economists polled by Reuters had forecast a 2.2 percent monthly emergence and a 15.2 percent surge connected the year.

Producers’ prices roseate sharply amid a accelerated economical betterment aft the astir acute signifier of the COVID-19 pandemic, a tightening of planetary proviso chains, and a leap successful state prices.

Energy prices roseate 7.7 percent month-on-month for a 40.7 percent year-on-year surge, accelerating their increase. However, full manufacture prices excluding vigor roseate lone 0.6 percent connected the month, slowing from erstwhile months.

The emergence successful concern prices mirrors the surge of user prices which accrued successful the bloc annually 3.4 percent successful September, according to Eurostat, which has estimated a 4.1 percent surge successful October.

Producer terms rises usually construe into higher prices for consumers that the European Central Bank wants to support rising astatine astir 2 percent. The slope and euro portion concern ministers expect the ostentation spike to walk successful coming months and ostentation to dilatory successful 2022.