Producer prices in the euro area rose by 43.3 percent in August compared to last year, he says Eurostat .
Producer inflation rose again to a new peak, as the previous inflation peak reached in July was 38 percent. On a monthly basis, producer prices rose by five percent compared to July.
High inflation was in line with prior expectations. Bloomberg’s the consensus of economists gathered expected producer prices to rise 43.2 percent from last year and 5.0 percent from July.
The increase in producer prices does not bode well for consumer inflation either, as producers try to transfer as much of their increased costs as possible to the final prices paid by consumers.
Nordea estimates today in his morning review that part of the increase in producer prices will be transferred to consumer prices in the coming months, despite the fact that the full pass-through of energy market prices to consumer prices in particular has been limited by various support measures.
Consumer prices in the euro area are already rising at their fastest rate ever. According to preliminary data, consumer inflation in the euro area already rose to ten percent in September.
Source: Arvopaperi by www.arvopaperi.fi.
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