Industrial Producer Prices rise in the EU by 0.2% drop in Cyprus by -0.3% in March 2018

In March 2018, compared with February 2018, industrial producer prices rose by 0.1% in the euro area (EA19), by 0.2% in the EU28, and fell by -0.3% in Cyprus, according to estimates from Eurostat, the statistical office of the European Union. In February 2018, prices remained unchanged in both zones, but dropped in Cyprus by -0.3% In March 2018, compared with March 2017, industrial producer prices rose by 2.1% in the euro area, by 2.4% in the EU28 and fell by -2.0% in Cyprus.

The 0.1% increase in industrial producer prices in total industry in the euro area in March 2018, compared with February 2018, is due to rises of 0.2% for intermediate goods, for durable and non-durable consumer goods and of 0.1% for capital goods, while prices fell by 0.1% in the energy sector. Prices in total industry excluding energy also rose by 0.1%. In the EU28, the 0.2% increase is due to rises of 0.2% for intermediate goods, for durable and non-durable consumer goods and of 0.1% for capital goods, while prices fell by 0.1% in the energy sector. Prices in total industry excluding energy rose by 0.1%. The highest increases in industrial producer prices were observed in Denmark, Estonia, the Netherlands, Poland, Finland and Sweden (all +0.6%), and the largest decreases in Spain (-0.9%) and Portugal (-0.8%).

The 2.1% increase in industrial producer prices in total industry in the euro area in March 2018, compared with March 2017, is due to rises of 3.9% in the energy sector, of 2.2% for intermediate goods, of 1.0% for capital goods and of 0.9% for both durable and non-durable consumer goods. Prices in total industry excluding energy rose by 1.4%. In the EU28, the 2.4% price increase is due to rises of 4.6% in the energy sector, of 2.5% for intermediate goods, of 1.1% for both durable and non-durable consumer goods and of 1.0% for capital goods. Prices in total industry excluding energy rose by 1.6%. The highest increases in industrial producer prices were recorded in Estonia (+7.3%), Bulgaria (+4.8%), Latvia and Sweden (both 4.0%), while decreases were observed in Cyprus (-2.0%), Ireland and Luxembourg (both -1.6%) and Greece (-0.2%).

Meanwhile, Euro area annual inflation is expected to be 1.2% in April 2018, down from 1.3% in March 2018, according to a flash estimate from Eurostat. Looking at the main components of euro area inflation, energy (2.5%, compared with 2.0% in March) and food, alcohol and tobacco (2.5%, compared with 2.1% in March) are expected to have the highest annual rate in April, followed by services (1.0%, compared with 1.5% in March) and non-energy industrial goods (0.3%, compared with 0.2% in March).

Source: Cyprus News Agency