In December 2016 prices increased by 0.8% in the euro area and by 0.9% in the EU28.
In January 2017, compared with January 2016, industrial producer prices rose by 3.5% in the euro area and by 4.3% in the EU28.
The 0.7% increase in industrial producer prices in total industry in the euro area in January 2017, compared with December 2016, is due to rises of 1.8% in the energy sector, of 0.8% for intermediate goods and of 0.3% for capital goods, durable and non-durable consumer goods. Prices in total industry excluding energy rose by 0.6%.
In the EU28, the 0.8% increase is due to rises of 1.9% in the energy sector, of 0.9% for intermediate goods and of 0.3% for capital goods, durable and non-durable consumer goods.
Prices in total industry excluding energy rose by 0.6%. Industrial producer prices rose in all Member States.
The largest increases were observed in Malta (+2.3%), Belgium (+2.1%), Spain (+1.8%) and Portugal (+1.7%).
Euro area annual inflation is expected to be 2.0% in February 2017, up from 1.8% in January 2017, according to a flash estimate from Eurostat, the statistical office of the European Union.
Looking at the main components of euro area inflation, energy is expected to have the highest annual rate in February (9.2%, compared with 8.1% in January), followed by food, alcohol & tobacco (2.5%, compared with 1.8% in January), services (1.3%, compared with 1.2% in January) and non-energy industrial goods (0.2%, compared with 0.5% in January). ■