By Eurasia Business News – March 4, 2022

In January 2022, industrial producer prices rose by 5.2% in the euro area and by 4.9% in the EU, compared with December 2021, according to estimates from Eurostat, the statistical office of the European Union. In December 2021, prices increased by 3.0% in both the euro area and the EU.

In January 2022, compared with January 2021, industrial producer prices increased by 30.6% in the euro area and by 30.3% in the EU.

Monthly comparison by main industrial grouping and by Member State

Industrial producer prices in the euro area in January 2022, compared with December 2021, increased by 11.6% in the energy sector, by 2.7% for intermediate goods, by 2.2% for durable consumer goods, by 1.6% for non-durable consumer goods and by 1.5% for capital goods. Prices in total industry excluding energy increased by 2.2%.

In the EU, industrial producer prices increased by 10.7% in the energy sector, by 2.7% for intermediate goods, by 2.1% for durable consumer goods, by 1.5% for non-durable consumer goods and by 1.4% for capital goods. Prices in total industry excluding energy increased by 2.0%.

The highest monthly increases in industrial producer prices were recorded in Romania (+12.0%), Belgium (+10.2%), Slovakia (+8.7%) and Czechia (+6.9%). Decreases were observed in Ireland (-11.4%), Sweden (-0.7%), Luxembourg (-0.3%), and Finland (-0.2%).

Annual comparison by main industrial grouping and by Member State

Industrial producer prices in the euro area in January 2022, compared with January 2021, increased by 85.6% in the energy sector, by 20.2% for intermediate goods, by 6.7% for durable consumer goods, by 6.0% for non-durable consumer goods and by 5.7% for capital goods. Prices in total industry excluding energy increased by 11.7%.

In the EU, industrial producer prices increased by 82.6% in the energy sector, by 20.6% for intermediate goods, by 7.0% for durable consumer goods, by 6.5% for non-durable consumer goods and by 5.8% for capital goods. Prices in total industry excluding energy increased by 12.0%.

The industrial producer prices increased in all Member States, with the highest yearly increases being registered in Ireland (+60.5%), Romania (+57.3%) and Denmark (+54.0%)

War in Europe threatens prices

Markets are worried about the consequences of the war in Europe for global supply.

Benchmark crude oil prices soared Wednesday to levels more seen in nearly a decade, at more than $110 a barrel. Record also for the European reference price of natural gas, the Dutch FTT, which soared Wednesday to € 194.715 per megawatt hour (MWh).

The ton of aluminum, of which Russia is the world’s third largest producer, peaked Wednesday at $3,552 in London, an all-time high.

Prices for milling wheat and maize are also at their highest in Europe, as are soybean and palm oils.

Russia and Ukraine are the world’s largest and fourth largest exporters of wheat, respectively, as well as sixth and fourth in corn, according to estimates by the U.S. Department of Agriculture (USDA). The armed conflict in Ukraine, that outbroke in 2014 and entered in a new phase this year on February 22, threatens the global wheat and palm oil supplies as well as the rare metals market.

Gold prices have been surging since January, amid geopolitical tensions and inflation worries in Europe and the United States. On March 4, gold was traded in the morning at $ 1,949.70 per troy ounce at the the London marketplace.

Read also : How to invest in gold

The yellow metal has always been a great hedge against inflation because it rises in price when the cost of living standards rises. 

U.S. inflation on consumer prices reached a record, hitting 7.5% in January 2022 on annual terms. This is the highest level of inflation never seen in the United States since February 1982 and the dynamic has been here for months. U.S. annual inflation hit 7% in December 2021, 6.8% in November and 6.2% in October.

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