Energy prices rose particularly sharply, costing 87.2 percent more than a year earlier.
(Photo: dpa)
Luxembourg Inflation in the euro zone is accelerating. In February, producer prices rose again at record speed. The prices that manufacturers receive for their goods rose by 31.4 percent compared to the same month last year, as reported by the Eurostat statistics office on Wednesday. This is the highest rate since the introduction of the euro more than two decades ago. On average, experts had even expected a somewhat stronger increase.
Energy prices rose particularly sharply, costing 87.2 percent more than a year earlier. The prices for intermediate goods rose by 20.8 percent. This reflects a number of problems in international trade that originally stemmed from the pandemic but are likely to become even more apparent with Russia’s war against Ukraine.
Producer prices measure producer-level price pressure by capturing producers’ selling prices. As a rule, the development is at least partially reflected in consumer prices, on which the European Central Bank bases its monetary policy.
Inflation has also increased at consumer level. In March, the cost of living in the euro zone was 7.5 percent higher than a year ago. That was the highest increase in the currency area’s history.
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The situation is likely to worsen with the war. Russia and Ukraine are major suppliers of raw materials. This increases the pressure on the ECB. It is aiming for an inflation rate of 2 percent in the medium term.
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