3 March 2004, 13:17  Eurozone Jan producer prices rise 0.25 m/m

Factory gate prices in the euro zone rose by a surprisingly strong 0.2 percent in January from December, the EU statistics agency said on Wednesday, a sign some producers were able to raise prices of their goods. The main reason for the rise in January producer prices was a 0.4 percent increase in the cost of intermediate goods. Energy prices rose 0.2 percent, Eurostat said. Compared with January 2003, producer prices were up 0.3 percent with a 1.3 percent drop in energy prices keeping a lid on the overall rise. Excluding the cost of energy, overall producer prices rose by 0.6 percent on an annual basis. The rise in producer prices was above expectations. A consensus forecast of economists by had looked for no change in prices from December to January and for a 0.05 percent rise in annual prices. Eurostat had earlier estimated that December producer prices inched down by 0.1 percent from November for an annual gain of 1.0 percent. This estimate was confirmed by Eurostat. Producers in Portugal, Belgium and Spain were able to raise their prices most in January with rises of 1.2 percent, 0.9 percent and 0.7 percent, respectively. The monthly rise in Spanish prices was the highest since January 2003, but economists said last month the rise should not pose of problem for Spain where consumer price inflation has consistently outpaced the euro zone average. In contrast, producers in Germany had to slash their prices in January by 0.2 percent from December, the only fall in the euro zone.||

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