Eurozone Producer Prices Surge

Producer prices in the Eurozone surged by 1.6% from the previous month in July of 2026, the most since March and above market expectations of a 1.2% increase, following the 0.3% drop in June. The rise was led by a 5.6% jump in costs of energy due to the near 70% surge in benchmark costs of natural gas in Europe, raising electricity bills and costs to producer a wide range of manufactured goods. Meanwhile, inflation was softer for capital goods (0.3%) while prices were unchanged for durable consumer goods and intermediate goods. In turn, costs fell for non-durable consumer goods. From the previous year, producer inflation surged to 5.8% from 4.6% in the earlier month.

Producer prices in the Euro Area decreased 0.3% month-over-month in June 2026, the first fall in four months, following a 0.2% gain in May and in line with expectations. Energy cost decreased 1.5%, after a 1% fall in May amid a fall in oil prices after a ceasefire between the US and Iran. Prices also rose at a slower pace for intermediate (0.3% vs 1.4%), capital (0.2% vs 0.3%) and durable goods (0.2% vs 0.3%). In addition, prices stalled for non-durable goods, following a 0.1% fall in May. Among the bloc's largest economies, prices fell in Germany (-0.3%), France (-0.6%), and the Netherlands (-1.1%) and stalled in Italy while rising 0.1% in Spain. Year-on-year, producer prices went up 4.6%, easing from a 5.9% rise in May which was the highest since March 2023.

Producer prices in the Euro Area increased 0.2% month-over-month in May 2026, following an upwardly revised 0.7% rise in April, in line with market expectations. Energy prices fell 1% in May, extending a 0.2% decrease in April as oil prices returned to pre-war levels. Excluding energy, producer prices increased 0.7%, easing from a 0.9% rise in the previous month. Among the main components, prices slowed for intermediate goods (1.4% vs 1.8%), and capital goods (0.2% vs 0.4%). Also, non-durable consumer costs decreased by 0.1%, and durable consumer goods inflation was steady at 0.3%, unchanged from April. Across the Eurozone's largest economies, producer prices moderated in Germany (0.2% vs 1.2%) and Spain (0.9% vs 2%), while prices declined in Italy (-0.5% vs 0.1%) and France (-0.3% vs -2%). On an annual basis, producer prices advanced 5.9% in May, the strongest increase since March 2023.