Source:Eurostat

2 SEPTEMBER 2011

PRODUCER PRICES rose a steep +0.5% in July month-on-month inflated by energy prices +1.5% (from -0.4%) as oil prices picked up on US demand and despite slow down concerns. Brent Crude oil prices turned into a haven and even surpassed WTI quotes while similarly gold prices shot up above USD 1600/ounce as the US debt ceiling impasse neared.

Intermediate Goods producer prices edged up +0.2% while Capital Goods fell
-0.1%. Durable Consumer Goods producer prices stayed flat while Non Durable inched up +0.2%, at stable levels for the second consecutive month.

In the Euro area , France's producer prices index were kept confidential.
Germany's prices grew +0.7%, Spain's rose +0.6% and Italy's a more subdued +0.3%. In the UK, the Union's fifth economic weight, producer prices rose equally to Italy's.

In one year, overall Euro area producer prices mechanically moved up +6.1% pushed up by energy prices +11.9% and Intermediate Goods sustained +6.3%. Capital Goods producer prices persistently rose +1.4% and Durable Consumer Goods prices +1.8% Non Durable were up +3.6%.

Germany's index climbed +5.7%, Italy's +4.9% while Spain's soared +7.4%. The UK's stayed at a high +12.6% since import prices at currency exchange rendered GBP prices higher in Sterling terms.