Factory price incomer breaker in Spain

Why did industrial price rise in Spain in 2022?

Following turmoil on energy markets in 2021 and 2022 caused by the COVID pandemic and then the start of the Ukraine war, industrial price growth in Spain peaked at 47% in March 2022. Companies tend to pass on industrial price rises to customers, ultimately fuelling inflation.

What is the industrial price index (IPRI)?

Did you know...? The Industrial Price Index (IPRI) is a short-term indicator that measures the monthly evolution of the prices of industrial products manufactured and sold in the domestic market, in the first step of their commercialisation, that is to say, at ex-factory prices, excluding transport and commercialisation costs and invoiced VAT.

Is Spain's manufacturing decline affecting the Eurozone?

In February, industrial production recorded a decline of 1.9%, following a revised contraction of 1.2% in January, marking a deepening of the slowdown. Having long outperformed its northern eurozone peers, the manufacturing dip now also seems to be affecting Spain, exemplified by an 11% decline in February in the automotive sector.

Does Germany's spending package affect confidence in Spain?

Unlike its peers, Spain has not yet seen any positive impact on confidence indicators from the announced German spending package. The Manufacturing PMI has fallen by 3.8 index points since December last year, dropping below the 50-mark into contractionary territory at 49.5 in March.