| Consensus | Consensus Range | Actual | Previous | Revised | |
| Month over Month | 1.5% | 0.7% to 0.9% | 0.6% | 3.4% | |
| Year over Year | 4.5% | 2.8% to 6.3% | 4.9% | 2.1% | 2.0% |
Highlights
Euro area industrial producer prices continued to rise in April 2026, highlighting persistent upstream inflationary pressures despite a moderation in monthly price growth. Producer prices increased by 0.6 percent month-over-month, following a stronger 3.4 percent rise in March, suggesting that cost pressures remain elevated but are no longer accelerating at the same pace.
The monthly increase was driven primarily by intermediate goods, which rose by 1.8 percent, indicating continued cost increases across industrial supply chains. In contrast, energy prices declined by 0.4 percent, providing some short-term relief to producers. Excluding energy, industrial producer prices increased by 0.9 percent, demonstrating that underlying inflationary pressures remain broad-based across the production sector.
On an annual basis, producer prices were 4.9 percent higher than in April 2025, reflecting sustained cost pressures within the euro area economy. Energy remained the dominant driver, with prices surging by 12.3 percent year-over-year, far exceeding increases in other industrial categories. Intermediate goods also recorded a substantial rise of 3.9 percent, while capital goods and durable consumer goods increased by 2.1 percent and 2.7 percent, respectively. Non-durable consumer goods were the only category to register a slight decline.
Overall, the data suggest that while energy-related volatility continues to influence producer prices, inflationary pressures are increasingly embedded across industrial supply chains. This may sustain upward pressure on consumer prices and complicate efforts to achieve price stability across the euro area economy.
Market Consensus Before Announcement
No more deflation in commodities with rising energy prices: PPI is seen up 1.5 percent on the month and 4.5 percent from a year ago in April.
Definition
The Producer Prices Index (PPI) measures the gross trading price of industrial goods sold into the domestic market. Changes in the index provide a guide to inflation from the point of view of the product's producer/manufacturer and, in contrast to the consumer price index (CPI), excludes VAT and other deductible taxed associated with turnover. The PPI covers manufacturing, mining and quarrying and utilities but excludes construction. The headline index can be very volatile so financial markets look at a core index to better understand underlying trends. This excludes the often highly erratic energy subsector.
Description
The PPI measures prices at the producer level before they are passed along to consumers. Since the producer price index measures prices of consumer goods and capital equipment, a portion of the inflation at the producer level gets passed through to the HICP. By tracking price pressures in the pipeline, investors can anticipate inflationary consequences in coming months.
Like the HICP, Eurostat's producer price index is also harmonized across the EMU and the larger EU membership. Producer price indexes provide another layer of information on inflation and can be an early warning of inflationary pressures building in the economy. They also record the evolution of prices over longer periods of time. The PPI reports on input prices or commodity prices and can tell whether producers are able to pass through increases in costs to their customers.
The PPI is considered a precursor of both consumer price inflation and profits. If the prices paid to manufacturers increase, businesses are faced with either charging higher prices or taking a cut in profits. The ability to pass along price increases depends on the strength and competitiveness of the marketplace.
Producer prices are more volatile than consumer prices. The CPI includes services components which are more stable than goods, while the PPI does not. Commodity prices react more quickly to supply and demand. Volatility is higher earlier in the production chain. Partly because of this, financial markets will look to the core (ex-energy) index to provide a better guide to underlying trends.