By Alexander Miller, energy and industry consultant – Eurasia Business News, December 4, 2021

Industrial producer prices are up 21.9% in the euro area and 21.7% in the EU compared to October 2020.

In October 2021, compared to September 2021, industrial producer prices rose 5.4% in the euro area and 5.0% in the EU, according to estimates from Eurostat, the statistical office of the European Union.

In September 2021, prices had increased by 2.8% in the euro area and by 2.7% in the EU.

In October 2021, compared with October 2020, industrial producer prices increased by 21.9% in the euro area and by 21.7% in the EU.

Monthly comparisons by sectors

In October 2021, compared to September 2021, industrial producer prices in the euro area increased by 16.8% in the energy sector, by 1.4% for intermediate goods, by 0.5% for durable and non-durable consumer goods and 0.4% for capital goods. Prices in the whole industry, excluding the energy sector, rose 0.8%.

In the EU, industrial producer prices increased by 14.9% in the energy sector, by 1.4% for intermediate goods, by 0.6% for capital goods and for non-durable consumer goods and 0.5% for durable consumer goods. Prices across the industry, excluding the energy sector, rose 0.9%.

Monthly comparisons by Member States

The strongest monthly increases in industrial producer prices were recorded in Belgium (+ 11.2%), Italy (+ 9.4%) and Romania (+ 8.6%), while the only ones Declines were observed in Estonia (-2.1%), Luxembourg (-0.3%) and Sweden (-0.2%).

Annual comparisons by major industrial sector

In October 2021, compared to October 2020, industrial producer prices in the euro area increased by 62.5% in the energy sector, by 16.8% for intermediate goods, by 4.2% for durable consumer goods, 3.9% for capital goods and 3.4% for not durable consumer goods. Prices in the whole industry, excluding the energy sector, rose 8.9%.

In the EU, industrial producer prices increased by 59.8% in the energy sector, by 17.1% for intermediate goods, by 4.6% for durable consumer goods, by 4 , 1% for capital goods and 3.6% for non-durable consumer goods. Prices in the entire industry, excluding the energy sector, rose 9.2%.

Annual comparisons by Member States

Industrial producer prices increased in all Member States and the largest annual increases were recorded in Ireland (+ 89.9%), Denmark (+ 39.8%) and Belgium (+ 34.5% %).

The roots of industry prices inflation

This strong rise of inflation in European industry prices can be explained by three factors. Firstly, large money supply carried out by the European Central Bank, with significant increase of quantitative easing over the past five years, put pressure on the purchasing power of euro currency. Secondly, supply chains disruptions because of Covid-19 pandemics complicate the industrial process. Lastly, the lack of skilled workforce in the industry in some European countries (France for instance) weigh on the industrial performance. As engineering and producing complex and innovative products become more difficult, European companies often choose to increase prices to generate more cash flows.

Thank you for being among our readers.

Our community already has nearly 30,000 followers !

Sign up to receive our latest articles, it’s free !

Support us by sharing our publications !

Follow us on Facebook and Twitter

© Copyright 2021 – Eurasia Business News.