Euro area producer prices outpace forecasts in January

Factory gate prices in the euro area dipped at the start of 2017 as energy prices dipped, but still came in ahead of forecasts.

Headline producer prices rose by 0.7% month-on-month in January and were ahead by 3.5% year-on-year, according to Eurostat.

Economists had penciled in a rise of 0.5% on the month and a 2.9% year-on-year gain.

Prices for intermediate goods were up 0.8% on the month following a rise of 0.4% in the previous month, while those for capital goods increased by 0.3% after an increase of 0.1% in the month before.

The cost of durable consumer goods meanwhile jumped 0.3% after an unchanged reading in the prior month, while that of non-durables ones was up by 0.3% versus a 0.4% advance in December.

In comparison with a year ago, energy prices were ahead by 9.7%, up from a 3.8% pace in the month before.

Excluding energy producer prices were higher by 1.5% in annualised terms, following a rise of 0.9% in the month before.