Europe’s industrial producer price (IPP) index increased by 2.2pc to 114.4 in the EU in July against the previous month and by 12.2pc against the same month last year, according to Eurostat. The increase slowed down from the 1.5pc rise in industrial producer prices encountered in June.
The index has climbed over the past 12 months after trending at 102 in July 2020. The index in July 2019 was 105.1 and 104.8 in July 2018. The index broke the 105 level in January 2021.
The IPP rose by 28.3pc in the energy sector in July annually but increased by 5.3pc in monthly terms. Intermediate goods rose by 13.1pc in July against the same year-ago month and grew by 2.1pc compared to the preceding month. Durable consumer goods rose by 3.1pc while capital goods climbed by 2.7pc annually in July and remained strong in monthly terms ticking up by 0.7pc and 0.6pc, respectively.
The Euro region’s annual inflation is anticipated to rise by 3pc in August 2021 following an increase of 2.2pc in July according to advance reports. Energy will have the largest jump with 15.4pc in August compared to an increase of 14.3pc in July while non-energy industry goods are expected to experience an inflation increase of 2.7pc against 0.7pc in July.