Farm Gate Prices Down In May

The agricultural price index for all outputs fell by 0.8% and the API for inputs fell by 1.4% in May 2014 according to a statistical bulletin from Defra. The prices are lower than the same time last year. The API for all outputs is 8.3% lower and the API for all inputs is 3.4% lower than last year.

All crop prices are down on last year at this time. The biggest differences in output prices are with potatoes (46%), fresh fruit (27%), cereals (18%) and fresh vegetables (18%). On the inputs side, energy and lubricant prices are down for the fourth month in a row. Prices fell by 0.3% in May and are 1% lower than a year ago. Animal feed is down 1.9% on the monthly comparison and 31% down on last year. Fertiliser prices are 2.9% lower in May and 9.1% lower than the same time last year.

OECD Annual Inflation Increases To 2.1%

The CPI for OECD countries increased by 2.1% over the year to May 2014. It had risen by 2% in the year to April. The increase was mainly driven by increases in the prices of energy at 3.4% and food at 2.2% in May. There were diverging patterns across countries such as lower energy and food prices in the EU/OECD countries and higher in non-EU/OECD countries. The monthly comparison shows that excluding food and energy OECD annual inflation fell slightly between April at 2% and May at 1.9%.

EA Inflation Expected To Fall To 0.5%

Euro area inflation (MUICP) is expected to fall to 0.5% in May 2014 from 0.7% in April according to the latest flash estimate from Eurostat. The services sector is expected to have the highest rate in May with 1.1%, followed by food, alcohol and tobacco with 0.1%, non-energy industrial goods and energy bot with 0.0%.

European Production Up 1.8%

Industrial production increased by 1.8% in the euro area between October and November 2013 according to a statistical bulletin from Eurostat. Production also increased across the EU as a whole with growth of 1.5% in the EU28. Production had decreased in October by 0.8% and 0.5% respectively. Ireland reported the biggest increase with 11.7%. There was monthly growth in all 5 sectors - capital goods, durable consumer goods, energy, non-durable consumer goods and intermediate goods.

There was an annual increase of 3% in both the euro area and the EU28 with the largest increases reported in Ireland with growth of 13.2% and Slovakia with 12.7%. Over the year capital goods increased by 4.4% in the euro area and 4.7% in the EU28. Intermediate goods grew by 3.3% and 3.5% respectively and non-durable goods grew by 3.1% and 2.7% respectively. Energy decreased by 0.5% in the euro area and 1.4% in the EU28 and durable consumer goods fell by 0.8% and 0.3% respectively.

Production Down Across Europe In May

Seasonally adjusted figures for industrial production fell by 0.3% in the euro area and by 0.6% in the EU27 compared with April according to Eurostat. Production had increased in April by 0.5% and 0.3% respectively.

The production of consumer durables decreased by 2.3% in the euro area and 2.1% in the EU27. Capital goods decreased by by 1.5% and 1.9% respectively and intermediate goods by 0.4% and 0.2% respectively. Energy rose by 0.1% in the euro area and fell by 0.3% in the EU27. Non-durable consumer goods increased by 0.6% in the euro area and fell by 0.1% in the EU27.

Nationally, the largest decreases were in Romania (-10.7%), Lithuania (-6.3%) and Sweden (-3.8%). Portugal (6.1%), Latvia (2.2%) and Estonia (2%) saw the largest increases.

Industry Producer Prices Fall By 0.2% Across EU

The industrial producer prices index, that reflects price changes at the factory gates of Europe, fell by 0.2% in both zones (EA17 & EU27) during March as compared with February according to the latest statistical bulletin from Eurostat, the statistical office of the European Union. The annual comparison between March 2012 and March 2013 shows that industrial producer prices increased 0.7% in both zones.

The monthly comparison shows that energy prices fell by 0.6% in both zones and capital goods were stable while non-durable goods prices increased by 0.1% in both zones. Intermediate goods prices increased by 0.1% in the euro area and were unchanged in the EU27. Durables prices rose by 0.1% in the euro area but fell by 0.1% in the EU27.

In March 2013 compared with March 2012 total industry prices excluding energy rose by 1% in the euro area and 1.1% in the EU27. Durables gained 0.6% in both zones and intermediate goods prices gained 0.4% in both zones. Non-durables prices increased by 2.1% in the euro area and 2.3% in the EU27 and capital goods prices increased by 0.7% and 0.8% respectively.

CPI Inflation Up To 2.8%

The CPI measure of inflation rose to 2.8% over the year to February 2013 following 4 consecutive months at 2.7%. The largest upward drives came from increases in energy prices and prices of some recreational goods, petrol and air travel. Downward pressure came from small price increases for food and soft drinks and a fall in the price of alcohol compared with the price rises of last year. It follows 4 years of widely fluctuating inflations rates.

The figures mean that a basket of goods that cost £100 in February 2012 would cost £102.80 in February 2013.

The new measure of consumer price inflation, CPIH including owner occupiers’ housing costs, has been launched. The CPIH annual rate is 2.6% in the year to February 2013, up from 2.5% in January.

Additionally, a new Retail Prices Index-based index using a geometric formulation (known as the Jevons formula) has also been launched. The 12-month rate for this index, known as RPIJ, stands at 2.6% in February compared with 2.7% in January.

Industrial Production Growth In Europe

Industrial production grew in both zones in Europe in December compared with November 2012 according to a statistical bulletin from Eurostat. Production in the euro area increased by 0.7% and in the EU27 by 0.5% the release estimated. Production of non-durables grew by 2% in the euro area and 1.3% in the EU27 while durables grew by 2% and 0.4% respectively. Capital goods grew by 1.3% in the euro area and 1.2% in the EU27 but intermediate goods fell by 0.2% and 0.3% respectively. Energy production fell by 1.2% in the euro area and 0.4% in the EU27. The annual comparison estimated that industrial production decreased by 2.4% in the euro area and 2.3% in the EU27. The average production index fell by 2.4% in the euro area and by 2.1% in the EU27.

Industrial Prices Fall In December But Increase Over The Year

The industrial producer price index published by Eurostat fell by 0.2% in both the euro area and the EU27 in December compared with November 2012. The index increased 2.1% in the euro area and 1.9% in the EU27 using the annual comparison for December. The average industrial producer price index for the whole of 2012 compared with 2011 increased by 2.6% in the euro area and 2.7% in the EU27.

Total industry prices excluding energy were stable in both zones in December. Capital goods and intermediate goods remained stable. Durable consumer goods decreased by 0.1% in both zones and non-durable goods increased by 0.1% in both zones.

Prices fell in most Member States for which data was available except Belgium and Sweden (+1.2%) and Finland (+0.2%). Bulgaria, Denmark, Cyprus and Austria recorded the largest decreases over the month. Over the year, total industry prices, excluding energy, increased by 1.6% in both zones.

MUICP Estimate 2%

HICP inflation in the euro area is expected to be 2% in January 2013, down from 2.2% in Decmber 2012, according to a statistical estimate from Eurostat.

Energy is expected to have the highest rate at 3.9% compared with 5.2% in December, food, alcohol and tobacco follow with 3.2% the same as December, services are almost unchanged at 1.7% compared with 1.8% and non-energy industrial goods at 0.8% compared with 1% in December 2012.

Industrial Production Continues To Fall

Production fell by 0.3% in both the euro area and the EU27 in November 2012 compared with October according to a statistical bulletin from Eurostat. Production had also fallen in October by 1% in the euro area and 0.8% in the EU27. Using the annual comparison, industrial production fell by 3.7% in the euro area and by 3.3% in the EU27.

Looking at the main components of the monthly index energy production fell by 1.6% in the euro area and 0.7% in the EU27. Durable consumer goods production fell by 1.1% in the euro area and by 1.4% in the EU27, non-durables fell by 1.2% in both zones. Intermediate goods fell by 0.3% and 0.4% respectively. Capital goods was the only component part to show any growth. There was 0.7% growth in capital goods production in the euro area and 0.5% in the EU27.

Over the year to November 2012 durables fell by 7.7% in the euro area and 6.8% in the EU27, non-durables by 3% and 2.7% respectively. Intermediate goods production fell by 4.8% and 4.3% respectively. Capital goods fell by 4.4% in the euro area and 3.7% in the EU27 but energy production increased by 0.5% in the euro area but fell in the EU27 by 0.6%.

Factory Gate Prices Down In Europe In November

Factory gate prices in both the euro area and the EU27 fell by 0.2% in November 2012 compared with October 2012 according to a statistical bulletin from Eurostat. November 2012 compared with November 2011 shows an increase of 2.1% in the euro area and 1.9% in the EU27.

While annual inflation in producer prices in November 2012 increased by 1.5% in both the euro area and the EU27, the monthly analysis shows that in November total industry inflation, excluding energy, fell by 0.1% in the euro area and remained stable in the EU27. Energy sector prices fell by 0.7% in the euro area and by 1.1% in the EU27.

In both zones, intermediate goods decreased by 0.2% in November and capital goods increased by 0.1%. Durable consumer goods increased by 0.1% in the euro area and remained stable in the EU27 and non-durable consumer goods increased by 0.1% in the euro area and 0.2% in the EU27.

Energy prices increased by 4.1% over the year in the euro area and 2.9% in the EU27. Durable consumer goods increased by 1.1% in both zones while non-durable consumer goods increased by 2.3% in the euro area and 2.6% in the EU27. Intermediate goods increased by 1.4% in the euro area and 1.2% in the EU27 and capital goods increased by 1% in the euro area and 0.9% in the EU27.

OECD Inflation Up To 2.2%

Annual inflation in the OECD area increased to 2.2% in September 2012 from 2.1% in August according to data from the OECD. Higher energy prices, at 5.1% increase, were the main cause of the slight increase. Food prices slowed to 2.1% in September after an increase of 2.2% in August.If food and energy atre excluded OECD inflation was 1.6% compared with 1.7% in August. Euro area inflation in September was 2.6%. In the UK it fell from 2.5% in August to 2.2% and in the US it increased to 2% from 1.7% and remained stable in Canada and Italy. Inflation also fell in France and Germany.

Europe 2020 Strategy Indicators

The European Council's Europe 2020 Strategy objectives as expressed in the 5 targets of employment, research and development, climate change and energy, education and poverty and social exclusion monitored on the basis of Eurostat headline indicators are the subject of a statistical bulletin from Eurostat.

Employment is the first key objective of the Europe 2020 Strategy. The target set for 2020 is 75% of those aged 20-64 in EU27. The employment rate increased from 66.6% in 2000 to 70.3% in 2008 but follwing the economic crisis it fell again to 68.6% in 2011.

Research and development expenditure has grown from 1.86% of GDP in 2000 to 2% in 2010. The target for 2020 is 3% of GDP.

The headline indicators for climate change and energy have three elements: greenhouse gas reduction, increase in the share of renewable energy in final energy consumption and an increase in energy efficiency. The greenhouse gas target for 2020 is a 20% reduction on 1990 levels. A steady decrease has resulted in a decline of 15% by 2010 on 1990. The target for renewable energy is a 20% share of gross final energy consumption. It has grown steadily from 8.1% in 2004 to 12.5% in 2010. The target for energy efficiency for 2020 for the EU27 is primary energy consumption of 1474m tonnes of oil equivalent (mTOE). The level has fluctuated but increased from 1560mTOE to 1650mTOE in 2010.

The objectives for education for 2020 are a decrease in the number of early school leavers and an increase in the number of people completing tertiary education. The target for 2020 is to reduce the share of the population aged 18-24 with at most lower secondary education and not currently in tertiary education or training to below 10% and to increase the share of those aged 30-34 in the EU27 having completed tertiary education to 40% or more. The share of early school leavers has decreased continuously from 17.6% in 2000 to 13.5% in 2011. The share of those having completed tertiary education has also increased steadily from 22.4% in 2000 to 34.6% in 2011.

The fifth key objective is a reduction of poverty and social exclusion, including monetary poverty, material deprivation and lack of access to the labour market. The 2020 target is to reduce the number of people affected by at least one of the three dimensions of poverty by 20m. The number has decreased from 123.9m in 2005 to 113.8m in 2009 but increased again to 115.7m in 2010.

Manufacturing Up But Production Trend Is Down

The index of manufacturing rose by 0.3% in January 2012 compared with 2011 while the overall index of production fell by 3.8% over the same period. On the monthly comparison manufacturing rose by 0.1% while total production fell by 0.4%. Mining and quarrying fell by 21.3% on the annual comparison and energy supply fell by 9.3%. Capital goods were up 4.2%.

European Producer Prices Down By 0.2%

The monthly industrial producer price index for December 2011 fell by 0.2% in both the euro area and the EU27 according to figures published by Eurostat. The annual comparison shows an increase of 4.3% in the euro area and 4.9% in the EU27. The average for 2011 was 5.9% in the euro area and 6.7% in the EU27.

Energy prices fell in both zones over the month (0.4% in the euro area and 0.6% in the EU27) but increased over the year (9.5% in the euro area and 9.6% in the EU27). The annual comparison shows the fall in the total industry (excluding construction) producer prices index decreasing year on year in the euro area. The trend is reflected in the index for intermediate goods in both the euro area and the EU27.

Fall In UK Production In November

The annual index of production published by the ONS fell by 3.1% in November 2011. Manufacturing fell by 0.6%. The monthly index of production fell 0.6% between October and November, manufacturing falling by 0.2%.

The fall in the index was also mainly due to falls in mining and quarrying (14.2%) and energy (8.6%) as well as the fall in manufacturing. Oil and gas was the main contributor in the big decrease within mining and quarrying with a 16.7% decrease which contributed 14% of the 14.2% fall. The biggest contributor to the fall within manufacturing was in the basic pharmaceuticals and preparations industries with a 12.7% fall.

Producer Prices Up In Europe

The industrial producer prices index by Eurostat increased by 0.2% in the euro area in November 2011 and by 0.3% in the EU27 compared with October. When compared with November 2010 the index went up by 5.3% in the euro area and by 6.3% in the EU27.

Total industry prices excluding energy fell by 0.1% in the euro area and remained stable in the EU27 in the monthly comparison. Energy prices increased by 0.9% and 0.1% respectively. Non-durable consumer goods increased by 0.3% in both areas and durables by 0.2%. Intermediate goods fell by 0.4% and 0.3% respectively and capital goods remained stable.

In the annual comparison total industry prices increased by 3% in the euro area and by 3.3% in the EU27. Energy prices increased by 12.3% and 13.8% respectively. Prices in the non-durable goods sector increased by 3.6% in the euro area and 4.2% in the EU27, intermediate goods by 3.5% and 3.8% respectively, durables by 2.6% in both zones and capital goods by 1.4% in the euro area and by 1.5% in the EU27.

Sweden reported the largest increases on the monthly comparison with 1.6%, followed by the UK, Ireland and Greece. Using the annual comparison, the greates increases were in the UK with 11.6% followed by Lithuania (10.8%) and Latvia (9.1%).

Inflation In The OECD Continues To Rise In September

Consumer prices in the OECD countries continued to rise in September by 3.3% after a 3.2% increase in August. It is the highest rate since October 2008. The 5.2% rise in inflation in the UK in September was mainly due to the 18.1% rise in energy prices in September after a 12.3% rise in August. It is back to the peak of September 2008, the highest since records began in January 1997. Consumer price inflation also increased in Italy (3%), Germany (2.6%), the US (3.9%) and Canada (3.2%). In France prices remained stable but in Japan prices fell by 0.2% to 0%. In Europe, the HICP increased to 3%.

CPI Highest Ever

CPI annual inflation reached 5.2% in September 2011 up from 4.5% in August according to the ONS. It is the highest CPI inflation has ever been since records began in January 1997. It was also 5.2% in September 2008. RPI, an alternative measure of inflation reached 5.6%.

The biggest upward pressure came from increases in prices for energy products gas and electricity. Upward pressure also came from air transport and communications services. Clothing contributed the main downward pressure.

Housing and household services increased by 8.6% compared with 5.1% last month. Restaurants and hotels annual rate was 4.7% compared with 4.6% last month. It is the highest ever for the sector.