Eurostat, the statistical office of the European Union (EU), reported on Thursday industrial producer prices climbed 2.3 percent m-o-m in euro area in July, following an unrevised 1.4 percent m-o-m gain in June. This marked the largest monthly increase since January 1995 and was well above economists’ forecast of a 1.1 percent m-o-m gain.

According to the report, producer prices increased in the energy sector (+5.7 percent m-o-m), for intermediate goods (+1.9 percent m-o-m), for durable consumer goods (+0.7 percent m-o-m), for capital goods (+0.5 percent m-o-m) and for non-durable consumer goods (+0.1 percent m-o-m). Excluding energy, producer prices rose 1.0 percent m-o-m in July.

In y-o-y terms, Eurozone’s producer price index (PPI) soared 12.1 percent in July, following an unrevised 10.2 percent jump in June. This was the largest annual increase on record. Economists had projected an 11.0 percent surge for July.