ZAGREB, 2 Sept 2021 - Industrial producer prices in Europe increased in July at the highest rate since statistics have been kept by Eurostat, reflecting the recovery of demand as COVID-19 restrictions were eased, the EU's statistical office reported on Thursday.
In July 2021, industrial producer prices rose by 2.3% in the euro area and by 2.2% in the EU, compared with June 2021, the strongest increase in the past twenty years. In June prices increased by 1.5% in the EU and by 1.4% in the euro area.
The accelerated increase in industrial producer prices reflects strong demand and frequent problems in the supply of parts and raw material alongside economic recovery from the coronavirus crisis and the hike in energy prices.
The highest increase in prices on the month was registered in the energy sector, of 5.3% in the EU and 5.7% in the euro area.
In the EU, industrial producer prices increased by 2.1% for intermediate goods, by 0.7% for durable consumer goods, by 0.6% for capital goods, and by 0.1% for non-durable consumer goods. Prices in total industry, not including energy, increased by 1.1%.
Industrial producer prices increased in all member States except Malta, where they remained stable. The highest increases were recorded in Ireland (+20.6%), Estonia (+6.4%), and Belgium (+4.2%).
In Croatia, industrial producer prices increased by 1.5% on the month, the strongest jump since the end of 2016. In June they increased by 1.1%.
Year-on-year, industrial producer prices in the EU increased by 12.2% in July and by 12.1% in the euro area. In June they increased on the year by 10.4% and 10.2% respectively.
The increase in prices was the strongest in the energy sector, where prices jumped by 28.3% in the EU and 28.9% in the euro area.
Industrial producer prices increased in all member states, with the highest increases being registered in Ireland (+67.7%), Estonia (+23.5%), and Belgium (+23.0%).
In Croatia the annual increase in industrial producer prices in July was 8.9%, this being the biggest increase since September 2012. In June they increased by 8.0% y-o-y.
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