BRUSSELS, Aug 3 (Reuters) – Euro zone producer prices fell in June for the sixth consecutive month and more than expected, according to data published on Thursday. The figures, much lower than those of the previous year, could reassure the European Central Bank.
Eurostat, the European Union’s statistical office, said factory prices in the 20 countries that share the euro fell 0.4% in June from May and 3.4% year-on-year.
Economists polled by Reuters had expected a monthly drop of 0.2% and a year-on-year decline of 3.1%.
Producer prices are a first indication of the evolution of consumer inflation, which the ECB wants to maintain at 2.0% in the medium term, but which in July stood at 5.3%.
The ECB raised its deposit rate to 3.75% in July, the highest level in 23 years, but raised the possibility of a pause in September on dim signs that inflation is easing and recession fears are mounting.
The monthly drop in producer prices in the Eurozone in June was driven by a moderation of 0.7% in the prices of intermediate goods, such as steel, sugar or wood, and a decrease of 0.5 % of energy costs.
The prices of capital goods, such as machinery, tools or buildings, rose 0.1%, while those of durable and non-durable goods remained unchanged month-on-month.
In year-on-year terms, energy costs registered a sharp decline, as did the prices of intermediate goods. The prices of capital goods, durable and non-durable rose at least 5%, although the increases have been decreasing steadily.
To consult the Eurostat statement:
(Reporting by Philip Blenkinsop; Editing by GV De Clercq; Editing in Spanish by Flora Gómez)
2023-08-04 02:01:24
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