Producer prices in the euro zone rose more than expected in April, adding to the evidence that inflationary pressures continue to build beneath the surface of the economy. The Producer Price Index rose 0.6% m/m, beating expectations of 0.4% m/m. Annual producer inflation accelerated sharply from 2.0% y/y to 4.9% y/y, slightly higher than expectations of 4.8% y/y. These numbers come just one day after stronger-than-expected inflation data in the euro zone, which reinforced expectations of an interest rate hike from the European Central Bank next week.
Details indicate that inflationary pressures are becoming increasingly widespread in the euro area. Intermediate goods prices rose 1.8% month-on-month, indicating continued rising costs across supply chains. Prices of capital goods and consumer durables rose by 0.3%, while prices of non-durable consumer goods remained unchanged. Energy prices fell by -0.4% during the month, meaning the acceleration in producer price inflation was not driven solely by energy costs.
Across the European Union, producer prices rose by 0.7% on the month and 4.9% on the year. Denmark, Croatia and Belgium recorded the largest monthly increases, while France, Estonia and Sweden saw declines.
| index | He walks | April | anticipation |
|---|---|---|---|
| Eurozone Producer Price Index M/M | 3.4% | 0.6% | 0.4% |
| Eurozone Producer Price Index Y/Y | 2.0% | 4.9% | 4.8% |
| EU PPI m/m | 0.7% | ||
| EU Producer Price Index Y/Y | 4.9% |
Components of the Eurozone Producer Price Index (month/month)
| component | April |
|---|---|
| Intermediate goods | +1.8% |
| Capital goods | +0.3% |
| Consumer durable goods | +0.3% |
| Non-durable consumer goods | 0.0% |
| energy | -0.4% |
Largest monthly changes by country
| nation | Producer Price Index m/m |
|---|---|
| Denmark | +3.0% |
| Croatia | +2.7% |
| Belgium | +2.4% |
Largest monthly declines by country
| nation | Producer Price Index m/m |
|---|---|
| France | -2.1% |
| Estonia | -0.8% |
| Sweden | -0.3% |
