Eurozone producer prices expectedly grew at a record pace in December on the rising energy costs, signaling continued pressure on already record-high consumer inflation.
- The EU’s statistics agency Eurostat stated that prices at factory games in the 19 countries bloc euro expanded 2.9% month-on-month in December for a 26.2% year-on-year increase.
- The December readings were largely influenced by the rising prices of energy that rose 7.0% month-on-month and roared 73.4% YoY.
- Excluding the volatile energy component, producer prices rose by only 0.5% on the month and 10% year-on-year.
- The yearly average producer prices for 2021 increased by 12.2% for both in the euro area and the EU compared to 2020.
- Producer prices usually translate into higher prices for consumers as manufacturers transfer their rising costs to the final consumers.
Eurozone consumer inflation in January jumped to 5.1% year-on-year as the European Central Banks target to keep it at 2% over the medium term.
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