February: +0.6% m/m, +3.6% y/y

MNI survey median: +0.5% m/m, +3.4% y/y
MNI survey range: +0.4% to +1.0% m/m

January: +0.8% m/m, +3.8% y/y (revised from +0.7%/+3.7%)
December: -0.2% m/m, +4.3% y/y (unrevised)
November: +0.3% m/m, +5.4% y/y (revised from +0.2% m/m)
October: +0.1% m/m, +5.5% y/y (unrevised)
September: +0.3% m/m, +5.8% y/y (unrevised)

FRANKFURT (MNI) – Eurozone producer prices rose slightly faster
than expected in February, with gains in all major components led by
energy, Eurostat reported on Tuesday.

Taking into account upward revisions in January, producer price
inflation came to +0.6% on the month in February, resulting in an annual
rate of +3.6%.

Energy remained the main driver, rising 1.2% on the month for an
annual increase of 9.3%. Excluding energy, core PPI rose 0.4% and 1.7%
on the month and year, respectively.

Supply issues with non-OPEC member states and ongoing geopolitical
tensions have helped keep oil prices consistently well above $120 a

Saudi Oil Minister Ali al-Naimi argued recently that there is “no
lack of supply.” Rather, “it is the perceived potential shortage of oil
keeping prices high – not the reality on the ground.”

Intermediate goods prices, usually the first to reflect commodity
prices trends, were up 0.6% m/m to give an annual rise of 1.1%. Capital
goods prices increased 0.2% between January and February, keeping the
annual rate unchanged at +1.4%.

Durable and non-durable consumer goods both rose 0.3% on the month.
On an annual basis, consumer durables were 2.4% more expensive on the
year, while non-durables were up 2.9%.

With oil firmly above $120, the proportion of manufacturers looking
to raise prices continued to trend upwards, a European Commission survey

Manufacturers blamed rising oil prices for most of the pick-up in
input price inflation in March, according to a recent PMI report. Yet
factory gate prices rose only modestly, reflecting strong competition
and weak demand.

In an interview earlier this week, ECB Governing Council member
Josef Bonnuci asserted that costlier oil was a bigger threat to Eurozone
economic growth than to price stability.

“At present there are no clear signs that higher oil prices have
led to more permanent domestic price pressures in the Eurozone as a
whole,” he said.

Last month, the ECB’s staff revised up its projection for Eurozone
inflation this year to between +2.1% and +2.7%. For 2013, inflation is
expected to range between +0.9% and +2.3%.

— Frankfurt bureau: +49-69-720 142; email: frankfurt@marketnews.com