EUROZONE ECONOMY AT GLANCE

Euro zone producer prices accelerated in May, driven by a surge in energy prices. In May 2021, industrial producer prices rose by 1.3% in the euro area and by 1.4% in the EU, compared with April. In May 2021, compared with May 2020, industrial producer prices increased by 9.6% in both the euro area and the EU.

In the EU, industrial producer prices increased by 2.3% in the energy sector, by 1.9% for intermediate goods, by 0.4% for capital goods and for durable consumer goods, and by 0.3% for non-durable consumer goods. The industrial producer prices increased in all Member States, with the highest increases being recorded in Ireland (+5.3%), Denmark (+3.3%) and Finland (+2.6%). Annual comparison by main industrial grouping and by Member State Industrial producer prices in the euro area in May 2021, compared with May 2020, increased by 25.1% in the energy sector, by 9.2% for intermediate goods, by 2.0% for durable consumer goods, by 1.9% for non-durable consumer goods and by 1.8% for capital goods. industrial producer prices increased by 24.8% in the energy sector, by 9.4% for intermediate goods, by 2.3% for durable consumer goods, by 2.0% for non-durable consumer goods and by 1.8% for capital goods. Prices in total industry excluding energy increased by 5.0%. The industrial producer prices increased in all Member States, with the highest increases being registered in Ireland (+45.1%), Belgium (+20.1%) and Denmark (+17.2%).

In May 2021, the euro area seasonally-adjusted unemployment rate was 7.9%, down from 8.1% in April 2021 and up from 7.5% in May 2020. The EU unemployment rate was 7.3% in May 2021, down from 7.4% in April 2021 and up from 6.9% in May 2020. Youth unemployment In May 2021, 2.979 million young persons (under 25) were unemployed in the EU, of whom 2.403 million were in the euro area. In May 2021, the youth unemployment rate was 17.3% in the EU and 17.5% in the euro area, down from 18.2% and 18.4% respectively in the previous month. Compared with April 2021, youth unemployment decreased by 174 000 in the EU and by 138 000 in the euro area. The unemployment rate for women was 7.6% in the EU, down from 7.8% in April 2021. The unemployment rate for men was 7.0% in May 2021, down from 7.1% in April 2021. In the euro area, the unemployment rate for women decreased from 8.5% in April 2021 to 8.3% in May 2021 while the unemployment rate for men decreased from 7.8% in April 2021 to 7.6% in May 2021.

Euro area annual inflation is expected to be 1.9% in June 2021, down from 2.0% in May according to a flash estimate from Eurostat, the statistical office of the European Union. Looking at the main components of euro area inflation, energy is expected to have the highest annual rate in June (12.5%, compared with 13.1% in May), followed by non-energy industrial goods (1.2%, compared with 0.7% in May), services (0.7%, compared with 1.1% in May) and food, alcohol & tobacco (0.6%, compared with 0.5% in May).