Prices charged by Dutch factories rose sharply in April, driven by a spike in oil prices caused by the war in the Middle East. According to Statistics Netherlands (CBS), factory gate prices were up 4.9 per cent compared with last year—a big jump from the 1.4 per cent increase seen in March. These back-to-back monthly rises follow four months of falling prices.
Before the Iran War broke out in February, factory prices were actually down by 2.4 per cent. However, the conflict has since sent crude oil prices soaring, with North Sea Brent crude costing 47 per cent more this April than it did a year ago. Because factories usually pass these higher energy costs on to their customers, these rising producer prices are likely to push up overall inflation.
The oil spike hit the petroleum sector hardest, where April prices plummeted upwards by 48.8 per cent compared with last year. Chemical prices also jumped by 11.6 per cent, as oil costs began to filter through to the sector. Overall, factory prices rose by 2.6 per cent between March and April alone, with domestic market prices jumping 3.4 per cent and export prices up 2.1 per cent.
@anp | NEWS BRAINPORT
