Eurozone producer price inflation slows in June

Eurostat, the statistical office of the European Union (EU) reported that industrial producer prices in the Eurozone fell by 0.1 percent m-o-m in June, following a revised 0.3 decrease m-o-m in May (originally a 0.4 percent m-o-m drop).

In y-o-y terms, industrial producer prices rose by 2.5 percent, following a revised 3.4 percent increase in May (originally a 3.3 percent gain). The figure was the lowest this year.

Economists had forecast the Eurozone's industrial producer prices in June would fall 0.1 percent m-o-m but raise 2.4 percent y-o-y.

According to the report, the June decrease in industrial producer prices was due to falls in prices in the energy sector (-0.3 percent m-o-m) and for intermediate goods (-0.2 percent m-o-m). These declines were partially offset by higher prices for capital goods (+0.1 percent m-o-m) and non-durable consumer goods (+0.2 percent m-o-m). Elsewhere, prices for durable consumer goods were stable.

The annual growth in industrial producer prices was underpinned by increases in prices in all groups. The prices for intermediate goods (+2.9 percent y-o-y) and in the energy sector (+2.9 percent y-o-y) recorded the biggest gains, followed by prices for non-durable consumer goods (+2.5 percent y-o-y), for capital goods (+0.9 percent y-o-y) and for durable consumer goods (+0.6 percent y-o-y).