Euro Area Industrial Producer Prices Pick Up in August

--EMU August PPI 0.3% vs Rev 0.0% July

By Shaily Mittal

     LONDON (MNI) - Euro area industrial producer prices expanded in August,

rising by 0.3%, surpassing analysts' expectations of 0.1% growth.

     Industrial prices rose 0.3% on the month in August across the euro area,

following zero growth in July, revised down from 0.1% growth previously, making

it the first month of growth since January.

     In the European Union (EU-28), producer prices rose by 0.4% from 0.1%

growth in July (revised up from -0.3% previously), making it the second month of

growth.

     In August, on a monthly basis, EMU growth was predominantly led by the

energy sector, which rose 0.7%, marking the first period of growth since

January. Prices of durable consumer goods was up 0.1% following a contraction of

0.1% while that for non-durable goods also grew 0.1%, albeit slower from 0.3%

growth on the month in July. Intermediate goods prices grew by 0.2% following a

decline of 0.1%. In contrast, capital goods prices did not grow at all following

eight months of growth.

     On a monthly basis, the largest increases in PPI in the euro area were

recorded in Slovakia (0.9%), Belgium (0.8%) and Greece (0.7%). Among the largest

nations in the euro area, Germany saw its second month of growth, with PPI

rising by 0.2% on the month while that in France was up 0.4%.

     On an annual basis, PPI grew by 2.5% in August in EA-19, following a

downward revision of 2% in July from 3.2% previously. This marks the fastest

growth since May when prices grew by 3.4% (revised down from 4.1% previously). 

     On an annual basis, PPI rose by the fastest pace in EA-19 in Belgium (7.2),

Estonia (5.7%) and the Netherlands (4.3%). Among the largest nations in the euro

area, Germany's growth increased to 2.4% from 2.1% in July (revised down from

3.9% previously). Growth in prices in France rose to 2% y/y in August from 1.6%

(revised down from 3.6% y/y previously).

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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