Source:Eurostat

8 JUNE  2011

PRODUCER prices in the Euro area rose a steep +0.9% in the period up to April inflated by energy prices +2% rise, equal to similar monthly price hikes since January due to Brent crude oil prices +28% gain to USD 123.6/barrel on the same period according to national statistics (+18.4% expressed in Euro to 85.5) following MEA revolutions, lasting unrest in Libya, and the effect of the dollar's depreciation against the Euro.

In the EU 27, overall producer prices inched down +1% while energy prices moved down to 2.2% (from 3%) offset by rich oil Norway, and tax differentiations between continental Europe and eastern member states as well as pricing.

The Euro area's Intermediate Goods producer prices grew +0.6%, impacted by  petroleum derived chemical products as well as non ferrous metal-metallic products, up on average +2.5% on the same period as major commodities in demand for the automobile industry products and equipments as well as IT manufacturing.

Capital Goods producer prices by contrast stayed unchanged or +0.1% and for the third consecutive month reflecting the sector's order book gap initiated n March. Durable Consumer Goods producer prices reflected this trend, and inched up +0.2% while Non Durable Consumer Goods producer prices jumped +0.5% pushed up by inflationary food products prices as well as consumer products including pharmaceuticals and personal care due overwhelmingly to chemical products.

Among the Euro area's major economic states besides France, in Germany, producer prices shot up +1.1%. By contrast, prices moved down +0.6% in each Italy and in Spain as warmer weather called for lesser energy demand. In the UK, a non Euro area member but a Union major economic weight, producer prices fell by half to +1.8%.
 
In one year, the Euro area's producer prices stayed on the rise and climbed +6.7% against +7.8% in the EU 27. Energy producer prices soared +13.3% in the Euro area and +15.4% in the EU 27 due to successive higher producer prices increases. On the same period, Intermediate Goods producer prices mechanically moved down over one percentage point to +7.3%, their first decline in two months, while Capital Goods producer prices rose +1.3% for the fourth uninterrupted month mirroring commodities prices among which non ferrous metal prices, up 14% on an index base. Durable Consumer Goods producer prices jumped +2% and Non Durable Consumer Goods +3.4%
 
In Germany, prices climbed +6.4%, in Spain +7.3% due to food prices while Italy's moved down to +5.5%. In the UK prices were up two percentage points to +13.1% due to oil prices.