Eurozone Producer Prices Decline in June for First Time in Four Months

Eurostat reported on Wednesday that producer prices in the Eurozone declined by 0.3 percent on a monthly basis in June. This represents the first decrease in four months and was driven largely by a 1.5 percent drop in energy prices.

While energy costs fell, other sectors saw modest gains. Prices for capital and durable consumer goods each rose by 0.2 percent, and intermediate goods increased by 0.3 percent. When excluding energy, producer prices grew by 0.2 percent, which is a deceleration from the 0.7 percent increase recorded in May.

On a yearly basis, producer price inflation fell to 4.6 percent, a three-month low compared to the 5.9 percent seen in May. In the broader European Union, producer prices decreased by 0.2 percent from May but remained 4.7 percent higher than the levels recorded in June of the previous year.