That’s a notable bump to start the year and even if you exclude energy prices (+1.3%) from the equation, euro area producer prices were still up 0.6% in January. The breakdown shows increases across the board in the likes of intermediate goods (+1.0%), capital goods (+0.6%), and durable consumer goods (+0.8%). That is all only marginally offset by a decline in prices for non-durable consumer goods (-0.2%) on the month.

But when compared to the same month last year, euro area producer prices are down 2.1%. That being said, it owes much to base effects as energy prices are the biggest drag. The year-on-year reading for energy prices show a 8.9% decline. So if you strip that out, producer prices are actually seen up 1.2% in year-on-year terms.