European producer-price inflation accelerated in July, led by higher costs for energy.
Factory-gate prices in the 17-nation euro region rose 6.1 percent from a year earlier after a 5.9 percent increase in June, the European Union’s statistics office in Luxembourg said today. The gain was in line with the median of 18 economists’ estimates in a Bloomberg News survey. Prices rose 0.5 percent from June.
Crude-oil costs have jumped 18 percent over the past year, adding pressure on companies to raise prices just as economic growth falters. European economic confidence slumped in August as consumers grew more pessimistic. While the European Central Bank has raised borrowing costs twice this year, bringing the benchmark to 1.5 percent, members of the bank’s so-called shadow council have called on council members to reverse the increases.
Energy prices at the producer level jumped 11.9 percent from a year earlier after a 10.7 percent gain in June, today’s report showed. The cost of intermediate goods such as car engines and steel advanced 6.3 percent, while capital goods including equipment and machinery were 1.4 percent more expensive. Prices of durable consumer goods rose 1.8 percent.
The euro extended losses after the data were released, trading at $1.4225 at 11:04 a.m. in Brussels, down 0.2 percent.
To contact the reporter on this story: Simone Meier in Zurich at smeier@bloomberg.net
To contact the editor responsible for this story: Craig Stirling at cstirling1@bloomberg.net
