EU manufacturing prices: moderate growth amid local contrasts

According to Eurostat, the industrial price index in the euro area rose by 0.2% in February 2025 compared to January, while in the EU it rose by 0.3%. This is a slowdown compared to January, when growth was 0.7% and 0.8% respectively. However, in annual terms, the index shows a significant recovery, rising by 3.0% in the euro area and 3.1% in the EU.

Energy was a significant growth driver: prices in this sector rose by 7.4% compared to February 2024. There was also moderate growth in the capital goods (+1.6% in the eurozone) and consumer goods sectors.

Among the EU countries, the largest monthly jumps occurred in Estonia (+9.5%), Romania (+4.8%) and Bulgaria (+2.5%). At the opposite pole is Ireland, which recorded a decrease of -4.9%, as well as France and Slovakia (-0.8%). Luxembourg was also in the negative: -0.3% compared to January and -5.6% compared to February last year, the largest decrease in the EU.

Excluding the energy sector, growth in the euro area is only 1.4% year-on-year - evidence of subdued overall inflationary pressures, despite spikes in individual countries. The sharp price increases in Bulgaria (+19% y/y), Ireland (+12.8%) and Estonia (+12.7%) are particularly notable.

This stratification is due to both structural differences in production and the impact of local factors, including tax and energy policies and supply chains. While some countries are seeing industrial recovery, others are still under pressure due to high costs or declining demand.

The data indicate that the EU industrial sector remains sensitive to energy price fluctuations and macroeconomic shocks. Combined with international trade uncertainties, this could keep prices mixed in the coming months.