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Eurozone producer prices jump as energy lifts July PPI

July eurozone PPI rose 1.6% month over month, reversing from -0.3% in June, with energy also accelerating to 12.9% year over year.

Reported · Written up by our desk · Inflation

Eurozone producer prices accelerated sharply in July, with PPI swinging to a 1.6% month over month increase, above expectations, after a -0.3% reading in June, according to Action Forex.

Annual producer inflation rose to 5.8% from 4.6% year over year. The monthly jump was overwhelmingly driven by energy, with energy prices rebounding from -1.5% to +5.6% month over month.

Even so, underlying pressure was also visible beyond energy. Energy inflation accelerated from 8.8% to 12.9% year over year, while intermediate-goods inflation edged up to 6.3% from 6.1%, and PPI excluding energy moved higher to 3.1% from 3.0% year over year.

Broad geographic gains accompanied the rise, with producer prices increasing 3.0% month over month in Spain and Italy, 1.1% in Germany and France, and 4.3% in Ireland, Action Forex said, adding that ex-energy and intermediate-goods increases suggest pipeline cost pressures have not disappeared.

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