Eurozone Industrial Producer Prices Rise 1.9% as Expected

Producer prices in the Euro Area rose 1.9% from the previous month in August 2026, the most since March, as expected following a 1.6% increase in July. 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 produce a wide range of manufactured goods. Also, prices increased for intermediate goods (0.4%), capital goods (0.2%), durable consumer goods (0.4%), and non-durable consumer goods (0.1%). From the previous year, producer inflation accelerated to 8.2% from 5.8% in the previous month, the highest since February 2023.

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.