Eurozone producer price inflation jumps to 22-month high
By Benjamin Chiou
Date: Wednesday 05 Mar 2025
(Sharecast News) - Wholesale inflation across the eurozone accelerated to a 22-month high in January, according to data out on Wednesday from Eurostat, with price pressures picking up across most major categories.
The producer price index for the single-currency region rose by 0.8% over the month, marking the fourth straight month of industrial price increases. This was above the 0.5% growth seen in December and the consensus forecast of 0.5%.
The more closely watched year-on-year growth rate in the PPI surged to 1.8% in January from just 0.1% in December. Notably, December was the first time since mid-2023 that producer prices posted annual growth.
January's acceleration, which surpassed the market estimate of 1.4%, marked the highest rate of wholesale price inflation since March 2023.
Energy prices were 3.5% higher than last January, compared with a 1.6% year-on-year fall in December, while capital goods inflation picked up to 1.6% from 1.4%, durable consumer goods inflation rose to 1.5% from 0.8% and intermediate goods inflation increased to 0.5% from 0%. Non-durable consumer goods inflation, meanwhile, eased to 1.8% from 2%.
Excluding the more volatile energy prices, the annual rate of PPI inflation rose to 1.3% in January, up from 1.0% the month before.
In other news from the eurozone, the final reading of a HCOB/S&P Global private-sector survey was unchanged from the initial estimate released two weeks ago, showing that growth across the region held steady in February.
The composite purchasing managers' index remained at 50.2 for the second straight month, representing relatively subdued growth (just 0.2 percentage points above the stagnant level of 50.0) as an expansion in the services sector was "almost fully eaten up by the recession in the manufacturing sector", according to Cyrus de la Rubia, chief economist at HCOB.
"The good news is that the downturn in the manufacturing sector is softening, which could pave the way for a recovery of the whole economy," he said.
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