This year’s inflationary storm is something we have not yet seen in the history of the eurozone. Producer prices are rising 20% annually and shocking economists month after month.
In October 2021, producer prices – i.e. PPI (Producer Price Index) inflation – in the eurozone were 5.4% higher than in September and As much as 21.9% higher than last year Eurostat flag. When counting for all EU countries, this indicator reached dynamics of 5.0% on a monthly basis and 21.7% on an annual basis.
This is another record set this year and the fastest increase in producer prices recorded in the Eurozone after 2000. This high producer price inflation surprised most economists, who expected prices to rise 3.2% month-on-month and 19.1% year-on-year.
We have observed a sharp acceleration in the dynamics of the annual PPI in the Eurozone since the spring. Even in February, producer prices grew at a moderate pace of 1.5% annually. In March it accelerated to 4.4%, in April to 7.6% already Since May they have been running at a rate of about 10% per year.
Energy, which was 62.5% more expensive than a year ago, was responsible for a large part of the producer price increase dynamics. October was the month of crazy price increases for coal and natural gas. However, prices of both commodities as well as crude oil fell significantly in November, which will be seen in Eurostat data with a significant delay.
However, it is worth paying attention to the fact that price growth in other categories is also accelerating from month to month. In October, intermediate goods rose 16.8% year-on-year, versus 15.2% the previous month. Capital goods down 3.9% year over year (compared to 3.6% in the previous month), consumer durables down 4.2% (compared to 3.6%), and nondurable goods down 3.4% (compared to 3.0%). Overall, excluding energy prices, the Eurozone PPI was 8.9% versus 8.1% in the previous month. It is already clear that inflationary pressure is spreading far beyond the energy sector.
Galloping prices in factories are not only a European peculiarity. In the US, PPI inflation for October was 8.6% y/y. in Poland The Central Bureau of Statistics estimated the dynamics of this indicator at a record rate of 11.8% on an annual basis,. While Germany has the highest score (18.4%) in 70 years!
The effects of price hikes in factories are already regularly transmitted to consumers. Clarify the prices that families pay November CPI increased by as much as 7.7%. It was the highest result in the twenty-first century. However, this is not the end – economists expect price inflation in December and January to exceed 8%. The high inflation rate in Poland is scheduled to be maintained until at least the end of 2023.
You will find all the important information about inflation in Poland and around the world Here.
“Internet Geek. Food Enthusiast. Thinker. Beer Practitioner. Bacon Specialist. Music Addict. Traveler.”