Eurozone producer prices rose by 1.6% month-on-month in July, mainly due to surging energy costs

⑴ Eurozone's Producer Price Index in July rose by 1.6% month-on-month, marking the largest increase since March and exceeding market expectations of 1.2%. The previous figure for June was a decrease of 0.3%.⑵ The primary driver was a sharp 5.6% rise in energy costs month-on-month, with European benchmark natural gas prices surging nearly 70%, which pushed up electricity and the production costs of various manufactured goods.⑶ The price increase for capital goods was relatively moderate (+0.3%), while prices for durable consumer goods and intermediate goods remained unchanged, and prices for non-durable consumer goods declined.⑷ Year-on-year, producer price growth in July rose to 5.8% from 4.6% in June.