Eurozone producer inflation reaches new 2-year high

By Tuba Ongun

Industrial producer prices in the eurozone rose at their fastest pace in two years, climbing 3% year-on-year in February, driven primarily by surging energy costs, according to data released on Thursday.

Energy prices soared 7.4% compared to the previous year, accelerating from a 3.4% increase in January, according to figures from Eurostat.

Price rises for intermediate goods also accelerated on an annual basis, rising to 0.9% in February from 0.5% in the previous month.

Across the European Union, industrial producer prices rose 3.1% year-on-year in February.

On a monthly basis, producer prices climbed 0.2% in the eurozone and 0.3% across the 27-member EU bloc.

The eurozone/euro area, or EA19, represents member states that use the single currency – the euro – while the EU27 includes all member countries of the bloc.