Source:Insee

3 MAY 2011

PRODUCER Prices increased a steep +0.9%, the sixth consecutive increase in the period up to March month-on-month according to national statistics erasing last month alignment with external markets, up +0.6%.

Food prices accounted in part for such disparity, up +0.7% compared with +0.3% on external markets. Manufactured products prices +1% gain contributed in the overall index inflationary trend as external markets prices grew +0.7% on the same period. In addition, coke and refinery oil products prices spiked +8.6% due to higher domestic refinery costs against +7.2% on external markets nearly equally to Brent crude oil prices +7.8% rise expressed in Euro and +10.6% expressed in currency. Consequently, the Euro's recent three year high against the dollar, an average USD 1.43, was wiped out by refinery costs.

By contrast, domestic electric-electronic equipment producer prices edged up +0.2% while external markets recorded +0.4% rise. Transport equipment producer prices performed inversely and fell -0.2% on external markets but stayed nearly unchanged or +0.1% on the domestic market. Other manufactured products prices climbed +0.4% on external markets but edged up +0.1% locally.

In the Euro area, prices rose +0.7% according to Eurostat figures, pushed up by energy prices +1.9% rise while Capital and Intermediate Goods moved down substantially respectively to nil and to +0.3%. In the EU 27, energy producer prices soared +2.8%. In Germany, prices moved down to +0.4% but in Italy and in Spain producer prices recorded their second consecutive increases of +0.7% and +0.9%. The UK's prices shot up +3%.

In one year, domestic producer prices shot up +6.6% while external markets prices grew +4.8%. Coke and refinery oil products producer prices skyrocketed +36.1% on the domestic market compared with +29.2% on external markets. On the same period, Brent crude oil prices increased +40.7% expressed in Euro and +45.3% expressed in currency. With the exception of manufactured products +6.6% gain against +4.6% on external markets, domestic producer prices increases, although steep, disconnected from external markets : food prices rose +5.7% compared with +7.9% on external markets. Domestic electric-electronic equipment producer prices grew +1.8% compared with +0.5%. Transport equipment producer prices climbed +0.7% on external markets and +0.6% locally. Other manufactured products rose +5.3% compared with +4% locally. 

In the Euro area producer prices jumped +6.7% and in the EU 27+7.4%Energy prices +13% and +14.1% accounted for this inflationary trend. Capital Goods producer prices arched over and rose +1.2%, Intermediate Goods moved down +7.9%, Durable Consumer Goods grew another +1.8% and Non Durable a steep +2.9% due to food products. Among the Union's major economic weights, the UK's producer prices increased the most,+10.7% followed by Spain's +7.8%, Italy and Germany each +6.1%. Romania and Bulgaria observed higher price gains in eastern Europe, respectively +9.5% and +12.1%