The rise in euro zone industrial producer prices accelerated in July, indicating a continued increase in price pressures that are likely to continue to drive up consumer inflation in the coming months, Eurostat data showed on Friday.
The rise in producer prices in the 19 countries sharing the euro accelerated to 37.9% year-on-year in July from 36% the previous month, beating expectations for a 35.8% rise as energy.
On a monthly basis, prices rose 4.0%, after a 1.3% increase in June.
Historically, producer price growth has only loosely correlated with consumer inflation, but the relationship between the two has tightened during the recent price rally, and Friday’s numbers likely indicate more pain for households across the bloc. .
Consumer inflation in the euro zone accelerated to 9.1% in August, Eurostat previously said, and is expected to peak at around 10% around the turn of the year.
The rise in producer prices was driven by a 97% jump in energy sector costs, but industrial prices excluding energy were still up 15.1%.
Source: CNN Brasil
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