Soaring energy ups euro zone March producer prices

Soaring energy costs fuelled a steep increase in euro zone producer prices in March as expected, data showed on Tuesday, in yet another sign of high inflation in the single currency area.

Prices at factory gates in the 15 countries using the euro rose 0.7 percent month-on-month, as expected by analysts, for a 5.7 percent annual gain, the European Union statistics office said.
Economists polled by Reuters had expected a 5.6 percent annual increase. Eurostat also revised up by 0.1 percentage point its February producer price growth data to 0.7 percent month-on-month and 5.4 percent year-on-year.

Core producer price inflation, a measure excluding the volatile energy and construction components, was 0.3 percent month-on-month and 3.7 percent annually — against 0.5 percent and 3.6 percent, respectively, in February.

Energy prices rose 1.8 percent from February for an annual gain of 12.7 percent, Eurostat said, as U.S. crude oil futures hit a new record high above $120 a barrel on Tuesday.

Reuters