rose by 0.4% in October 2024 compared to September 2024, according to preliminary data released by Eurostat, the statistical office of the European Union. This followed a 0.6% decline in producer prices in the previous month.
Increases in October 2024
First estimates showed that industrial prices in the euro area and the European Union saw a significant improvement in October 2024. This increase reflects a slight recovery in the industrial sectors after the decline in September. Experts indicated that the increase was driven by improvements in some industrial sectors that saw an increase in demand and production.
Year-on-year decline compared to October 2023
Despite the monthly increase, industrial producer prices saw a decline in October 2024 compared to the same month the previous year. Prices fell by 3.2% in the euro area and 3.0% in the European Union compared to October 2023. This annual decline reflects the continued pressure on the industrial sector in the face of various economic challenges.
Factors affecting industrial prices
The variation in industrial producer prices between different months is an indicator of changes in the market. Industrial product prices can be affected by several factors, such as fluctuations in energy prices, changes in demand in global markets, and challenges related to supply chains. The effects of monetary policies by central banks in the region also play a role in determining industrial price trends.
Despite the annual decline in prices, experts note that the general trend in prices may remain stable in the coming months, especially in light of expectations of improving economic conditions in some sectors. In addition, the continued pressure on costs in some industries may limit the ability to increase prices significantly.
Monthly comparison of industrial producer prices in the euro area and the European Union
In October 2024, industrial producer prices in the euro area saw some monthly changes compared to September 2024. According to the report issued by Eurostat, some industrial groups recorded significant increases, while others saw slight decreases. For intermediate goods, prices fell by 0.1%, reflecting continued pressure on some industries that rely on intermediate goods.
In the energy sector, prices rose by 1.4%. This increase may be due to increased demand for energy, or it may be linked to fluctuations in global energy prices. In contrast, capital goods prices remained stable, indicating no major changes in the prices of equipment or machinery used by companies in their production processes.
On other hand, durable consumer goods prices rose by 0.3%, while non-durable consumer goods prices increased by 0.2%. These increases reflect a slight improvement in demand for consumer goods, which may indicate a state of stability in consumer spending in the euro area.
In the European Union, monthly movements were largely similar to those in the euro area. Prices of intermediate goods fell by 0.1%, while energy prices rose by 1.1%. Prices of capital goods remained stable, while durable consumer goods rose by 0.3% and non-durable consumer goods by 0.2%.
Relatively stable prices
Despite changes in some sectors, overall prices in industries excluding energy remained stable in both regions. This stability reflects a relatively balanced industrial market, with no significant changes in overall product prices.
Differences between EU Member States
When looking at the data for Member States, it can be seen that some countries recorded significant increases in industrial producer prices in October 2024. For example, Estonia and Italy recorded the largest monthly increases, each by 1.0%. This was followed by France with an increase of 0.9%, and then Sweden with an increase of 0.8%. Some countries saw significant price declines.
Year-on-year comparison of industrial producer prices in the euro area and the EU
In October 2024, compared to the same month last year, data on industrial producer prices in the euro area showed some notable variations. Some industrial groups saw significant price declines, while others saw slight increases.
Euro area industrial producer price changes
For intermediate goods, prices fell by 0.5% compared to October 2023, indicating a slight decline in demand or production for these goods. In the energy sector, the declines were even sharper, with prices falling by 11.2%. This significant decline reflects the continued pressure on global energy markets due to price volatility and economic concerns.
By contrast, capital goods prices rose by 1.3%, indicating an improvement in industrial production and investment. Durable consumer goods, such as furniture and household appliances, rose by 0.7%. Non-durable consumer goods, such as food and everyday consumer products, increased by 1.8%.
Changes in the European Union
For the European Union, industrial producer prices saw similar movements. Prices of intermediate goods fell by 0.6% compared to last year, while energy prices fell by 10.2%. This significant decline in energy prices reflects the ongoing impact of the energy crisis in some European countries.
As for capital goods, prices increased by 1.5%, reflecting continued investment in the industrial sector. Prices of durable consumer goods also rose by 0.4%, while prices of non-durable consumer goods increased by 1.7%.
Despite the decline in energy prices, overall prices in industries excluding energy increased by 0.7% in the EU, reflecting stability in the non-energy production sector.
Disparities between Member States
At the Member State level, there were significant differences in annual changes in industrial producer prices. Slovakia recorded the largest annual decline in prices, falling by 20.4%. Luxembourg and France also saw notable declines of 6.4% and 5.7% respectively.
