Eurozone producer price inflation accelerated above expectations in July, powered by a rise in expensive energy prices.
Producer prices among the 19 countries in the Eurozone rose 0.4 per cent month-on-month and four per cent year-on-year in July, according to data released by Eurostat this morning.
This came in against market expectations of a 0.3 per cent rise month-on-month and 3.9 per cent year-on-year increase, as recorded in a Reuters poll of economists.
Energy prices were the biggest overall variable in the index, rising 1.1 per cent in the month and 10.7 per cent compared to last year. If removed, producer prices only rose 1.7 per cent year-on-year.
Belgium, Denmark and Estonia were hit the hardest by rising energy prices at 9.8 per cent, 9.5 per cent and 8.9 per cent respectively compared to last year. The UK and Ireland, meanwhile, saw prices fall by 0.1 per cent month-on-month.