This is a notable jump for the start of the year and even if you remove energy prices from the equation (+1.3%), euro zone producer prices were still up 0.6% in January. The breakdown shows that intermediate goods (+1.0%), capital goods (+0.6%), and consumer durables (+0.8%) increased across the board. All this was modestly offset by a decline in consumer non-durable goods prices (-0.2%) this month.
But producer prices in the euro zone are down 2.1% compared to the same month last year. That being said, the main reason for this is the base effect as energy prices are the biggest hurdle. The year-on-year reading of energy prices showed a decline of 8.9%. So if you take that out, producer prices actually rose 1.2% year-on-year.
