Economy: Increase of up to 66 percent: producer prices in the euro area are climbing at record speed
Berlin, Brussels The prices of manufacturers in the euro zone are rising faster and faster because of expensive energy. The producer prices of industrial products rose in November by a record 23.7 percent within a year, as the Eurostat statistics office announced on Thursday.
Economists polled by Reuters had only expected 22.9 percent, after plus 21.9 percent in October. In energy alone, there has now been a massive increase of 66 percent. If you exclude this area, the producer prices rose by just under ten percent overall.
The producer prices are considered to be a leading indicator for the development of inflation. In the statistics, the prices are kept ex-factory – i.e. before the products are further processed or go on sale. You can use it to give an early indication of the development of consumer prices.
Inflation is currently on the rise in the euro area and has shot well above the European Central Bank (ECB) target of two percent. Fired by the massive increase in the cost of oil and gas, consumer prices climbed 4.9 percent within a year in November – the highest value since the beginning of monetary union. The December dates will be released on Friday. Here experts expect a slight decrease to 4.7 percent.
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