Eurozone producer price inflation accelerated sharply in April driven by higher energy prices, data from Eurostat showed on Wednesday.

Producer price inflation rose to 7.6 percent in April from 4.3 percent in March. This was also bigger than economists’ forecast of 7.3 percent.

Excluding energy, producer prices rose 3.5 percent on year, following a 2.3 percent increase in March. Energy prices surged 20.4 percent.

Among other components, intermediate goods prices grew 6.9 percent and that of capital goods rose 1.3 percent. Durable and non-durable consumer goods prices gained 1.7 percent and 1.1 percent, respectively.

Month-on-month, producer prices grew 1 percent in April versus 1.1 percent increase a month ago. Economists had forecast a monthly growth of 0.9 percent.

Data released this week showed that consumer price inflation in the currency bloc climbed to 2.0 percent in May from 1.6 percent in April. The European Central Bank targets inflation “below, but close to” 2 percent.

The material has been provided by InstaForex Company – www.instaforex.com

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