Energy costs push up euro zone producer prices in September

Producer prices herald changes to consumer inflation, because their increase is usually passed on to the consumer

(More expensive energy and intermediate goods pushed up euro zone prices at factory gates more than expected in September, data from the European Union’s statistics office showed on Monday. (Photograph: ANDY BUCHANAN/AFP/Getty Images)

(More expensive energy and intermediate goods pushed up euro zone prices at factory gates more than expected in September, data from the European Union’s statistics office showed on Monday. (Photograph: ANDY BUCHANAN/AFP/Getty Images)

 

More expensive energy and intermediate goods pushed up euro zone prices at factory gates more than expected in September, data from the European Union’s statistics office showed on Monday.

Producer prices in the 19 countries sharing the euro rose 0.6 per cent month-on-month in September for a 2.9 per cent year-on-year increase. Economists polled by Reuters had expected a 0.4 per cent monthly rise and a 2.8 per cent annual gain.

Energy prices rose 1.5 per cent month-on-month and jumped 4.6 per cent year-on-year.

Producer prices herald changes to consumer inflation, because their increase is usually passed on to the consumer.

The European Central Bank wants to keep consumer inflation below, but close to 2 per cent over the medium term and is buying government bonds on the secondary market to inject more cash into the economy and stimulate price growth.

But it halved the amount of monthly purchases to €30 billion as economic growth picks up.

Reuters