FXstreet.com (Barcelona) - Prices at factory level have risen well above expectations in the Euro Area in May, fuelled by fast growing energy prices, according to data released by Eurostat.

Producer prices have increased 1.2% in May from April, and 7.1% in the last twelve months, figures somewhat larger than the 0.9% monthly increase and the 6.7% increase expected by market analysts.

Energy prices have been the main inflationary contributor in May, posting a 4.1% increase on the month, and a 18.2% rise from May 2007. Excluding the energy sector, producer prices have grown 0.3% month on month, and 3.8% on the year.