The prices of goods leaving the eurozone’s factory gates rose at their fastest pace in almost four years during June, a sign that higher energy prices are set to lift inflation from recent lows.
However, there are few signs that inflationary pressures are building outside of the energy sector, which may mean that any energy-driven boost to inflation will prove short-lived.
The European Union’s statistics agency said Tuesday that producer prices rose 0.7% from May, and were down 3.1% from June 2015. That was the second straight monthly rise in prices, and the largest since August 2012. Economists surveyed by The Wall Street Journal last week had estimated that prices rose by 0.5%.
The increase in producer prices suggests that the eurozone is poised for a sustained move out of deflation. Figures released Friday showed consumer prices rose 0.2% year-over-year in July, having been below their year-earlier levels as recently as May.
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