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Business, Economy, Euro
Internal Market, Industry, Entrepreneurship and SMEs

Decomposing producer price inflation in the euro area – quarterly update

Updated every quarter, this indicator provides a measure of the relative importance of supply and demand factors in determining the inflationary pressure in the euro area.

Key messages of this edition

  • In 2025Q1, producer prices in industry in the euro area increased by 2% year-on-year.
  • The disinflationary trend is broadly still ongoing.
  • However, this recent small increase reflects base effects following the sharp decline from 2022Q4 as well as recent supply constraints.
  • Monetary policy has determined the disinflationary trend of demand factors, which are not playing any longer any inflationary role.