Eurozone Manufacturing PMI Input Prices Hit 3-Year High, Signaling Inflation Surge
Eurozone manufacturing PMI input prices surged to 80 in May, the highest since May 2022, with output prices hitting a 3.5-year high, indicating accelerating inflation pressures from rising energy and raw material costs.
The Eurozone Manufacturing PMI Input Prices index jumped to 80 points in May, marking the highest level since May 2022 and the largest monthly increase in costs for firms in four years. Output Prices also rose sharply, reaching 62 points — the highest in three and a half years.
The rate of increase in prices charged by companies has surged by 12 points, or 24%, since the start of 2026, driven primarily by rising energy and raw material costs. Supply chain delays have worsened, returning to levels not seen since the pandemic-era squeeze of 2022, adding further upward pressure on prices.
As a result, factories are passing higher costs on to customers, which is expected to push inflation higher over the coming months. Price pressures across Europe are clearly accelerating.
Source: The Kobeissi Letter