Energy pushes factory-gate prices to a 2023 high
Annual industrial producer inflation in the euro area climbed to 11.1% in September, the steepest reading since February 2023, according to Eurostat figures published Thursday. The outcome beat the 10.9% that markets had anticipated and came after an 8.3% annual rise in August. Measured month over month, producer prices advanced 2.5%, a quicker pace than August's 2% gain, the EU statistical office said.[S1][S2]
Energy was the dominant force behind the acceleration. Producer prices for energy soared 30.8% compared with a year earlier, well above August's 21% annual rate, and rose 7.8% on a monthly basis. Stripping energy out, industrial producer prices were up 3.5% year on year, only slightly above the 3.4% recorded in August, which suggests the headline jump was concentrated in the energy component rather than spread broadly across goods.[S1]
Intermediate goods climb while consumer goods slip
Prices for intermediate goods, the materials and components that feed into manufacturing, increased 7.1% annually. Non-durable consumer goods moved the other way, with prices down 0.6% from a year earlier. Producer prices reflect what manufacturers are paid for their output before it reaches shoppers; when they rise, they can point to inflationary pressure moving down the supply chain, though companies sometimes absorb part of the cost instead of handing it to customers.[S1]
Bulgaria leads the bloc as Luxembourg records the only fall
For the EU as a whole, industrial producer prices climbed 10.9% year on year, compared with 8% in August, while the monthly gain quickened to 2.6% from 1.9%. Energy producer prices within the bloc advanced 30% annually and 7.7% month on month. Bulgaria recorded the steepest yearly rise among member states at 22.9%, with Ireland next at 19.9% and Lithuania at 19%. Luxembourg was alone in posting an annual fall, with prices declining 8.1%.[S1]
On a monthly basis Bulgaria again led, at 4.6%, ahead of Lithuania at 4.2% and Greece and Spain at 3.9% each. Prices were unchanged in Luxembourg and Malta. Separate reporting indicated that eurozone inflation more broadly rose to 4%, with energy costs again cited as the driver.[S1][S3]
