Euro Area Producer Prices Change

Industrial producer prices in the Euro Area surged by 1.8% year-on-year in January 2025, up from December’s modest 0.1% increase and exceeding market expectations of 1.4%. This marked the highest inflation rate since March 2023, primarily driven by a sharp rise in energy costs (3.5% vs. -1.6% in December). Price increases were also recorded across other categories, including non-durable consumer goods (1.8% vs. 2.0%), capital goods (1.6% vs. 1.4%), durable consumer goods (1.5% vs. 0.8%), and intermediate goods (0.5% vs. 0.0%). Excluding energy, producer price inflation accelerated to 1.3% in January from 1.0% the previous month.