In November 2024, industrial producer prices in the eurozone and the EU increased significantly compared to October 2024. According to preliminary estimates from Eurostat, prices in the eurozone rose by 1.6%, while in the EU they increased by 1.7%. Despite this increase, industrial producer prices decreased compared to the same month last year. Producer prices in the eurozone fell by 1.2%, and in the EU by 1.1% compared to November 2023.
Year-on-year comparison by major industry groups
When comparing industrial producer prices in November 2024 with November 2023, some sectors saw a significant decrease. In the eurozone, prices for intermediate goods fell by 0.3%, while energy saw a sharp decrease of 5.3%. On the other hand, prices for capital goods increased by 1.3%, while prices for durable consumer goods increased by 0.6%. Non-durable consumer goods prices rose by 1.9%. Total prices in industry, excluding energy, rose by 0.9%.
Disparities between Member States
In the EU, intermediate goods fell by 0.2%, while energy prices fell by 4.8%. However, capital goods increased by 1.5%, and durable consumer goods prices rose by 0.5%. Non-durable consumer goods prices also rose by 1.9%. Total prices in industry excluding energy increased by 0.9%.
Across the EU, some countries recorded significant increases in industrial producer prices in November 2024. The largest increase in prices was in Bulgaria, by 4.9%, followed by Ireland, by 4.5%, and Sweden, by 4.2%. On the other hand, countries such as Estonia and Cyprus recorded significant decreases, by 1.4% each. Slovakia also recorded a decrease of 0.5%, and Luxembourg, by 0.4%.
Monthly comparison by major industry groups – November 2024
In November 2024, compared to October 2024, industrial producer prices in the euro area and the EU showed mixed developments across the main industrial groups. The monthly analysis shows the following:
In the euro area:
- Intermediate goods: Prices of intermediate goods fell slightly by 0.1%. This indicates a relative stability in prices, which may reflect continued demand for these products.
- Energy: Energy prices rose significantly by 5.4%. This is due to the increase in fuel and energy costs, reflecting pressures on the industrial sector in general.
- Capital goods: Prices of capital goods remained unchanged. This indicates stable demand for industrial equipment and machinery.
- Durable consumer goods: Prices of durable consumer goods fell by 0.2%. This decline may reflect reduced demand or improved productivity in some industries.
- Non-durable consumer goods: Prices of non-durable consumer goods remained stable, reflecting a relative balance in the daily goods market.
In the EU:
- Intermediate goods: Prices of intermediate goods were stable, with no changes recorded. This indicates continued demand for these products and no significant changes in the markets.
- Energy: Energy prices also rose by 5.4%. This growth poses a significant challenge for some industrial sectors that rely heavily on energy for their operations.
- Capital goods: Prices of capital goods were stable, as in the euro area, indicating continued stability in demand for these vital goods for industrial infrastructure.
- Durable consumer goods: Prices of durable consumer goods remained stable in the EU, indicating relative stability in this sector.
- Non-durable consumer goods: Prices of non-durable consumer goods rose by 0.2%. This indicates a slight increase in prices of everyday consumer products, which may reflect changes in production costs or increased demand.
Factors affecting industrial producer prices
Energy is a major factor that significantly affects industrial producer prices. The 5.4% increase in energy prices in November 2024 had a significant impact on the overall price increase across industrial sectors. Although capital goods prices stabilized, intermediate goods prices registered a slight decline, reflecting the challenges facing industrial production in some countries.
Global and local economic factors also played a role in determining price trends. Fluctuations in raw material and fuel prices affected some industries, leading to significant increases in some markets and higher costs in other sectors. In addition, changes in economic policies in various EU member states may affect production levels and prices in the market.
Forecast
Volatility in industrial producer prices in the EU and the euro area is expected to continue in the coming months. Prices are likely to increase in some sectors as a result of fluctuating energy prices and the challenges associated with them. Changes in global demand for various industries, including metals and energy, may also significantly impact prices.
On the other hand, some Member States are likely to continue to record significant price increases due to domestic economic changes, while others may face challenges in maintaining price stability in the face of global economic volatility.
Finally, the analysis of industrial producer prices in the euro area and the European Union shows that there is a significant variation in performance between countries and sectors. While some sectors experienced price increases, others experienced declines. These price fluctuations are expected to continue in the coming months, with challenges related to energy and economic changes that may affect the economy as a whole.
