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Energy costs drive up Spanish industrial production prices at record rate

Published 25/02/2022, 10:35

(Reuters) - Spanish industrial production prices rose at a record annual rate for the fourth straight month in January, pushed up by soaring energy and manufacturing costs, data from the National Statistics Institute (INE) showed on Friday.

Prices jumped 35.7% year on year in January, the fastest annual pace since the data series began in January 1976, INE said, as it revised the 12-month growth rate through December to 35.2% from a prior 35.9%.

Energy costs jumped by 91.4% in January from a year earlier, following an increase in prices of gas production and distribution that have been fuelled by the strong post-pandemic recovery and the Russia-West stand-off in Ukraine.

Industrial intermediate goods, such as bricks and tiles, were 21% more expensive than a year ago, pushed up by higher manufacturing costs from products like animal feeds and flour.

Industrial production price hikes are generally partly transferred by companies to customers and end up fuelling inflation. In recent months, energy prices and inflation have soared in European countries and Spanish inflation is running close to its fastest pace in three decades.

Industrial price increases could continue to rise as higher energy costs are passed on to manufacturers. Brick and roof tile manufacturers have complained about gas prices hikes imposed by utility Naturgy.

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