Eurozone producer price inflation up 0.2% in July

Eurostat, the statistical office of the European Union (EU), reported on Tuesday that industrial producer prices in the Eurozone rose by 0.2 percent m-o-m in July, following an unrevised 0.6 decrease m-o-m in June.

In y-o-y terms, industrial producer prices rose by 0.2 percent, following an unrevised 0.7 percent increase in June. The figure was the lowest since November 2016.

Economists had forecast the Eurozone’s industrial producer prices in June would increase 0.2 percent both in m-o-m y-o-y terms.

According to the report, the July increase was due to gains in the energy sector (+1.0 percent m-o-m and for capital goods (+0.1 percent m-o-m), which, however, were partially offset by decline in prices for intermediate goods (-0.3 percent m-o-m). Meanwhile, prices for durable consumer goods and non-durable consumer goods were stable. Prices in total industry excluding energy fell by 0.1 percent m-o-m.

The annual growth in industrial producer prices was underpinned by increases in prices for capital goods (+1.5 percent y-o-y), for durable consumer goods (+1.4 percent y-o-y) and for non-durable consumer goods (+1.0 percent y-o-y). These gains, however, were partially offset by decreases in prices in the energy sector (-1.7 percent y-o-y) and for intermediate goods (-0.2 percent y-o-y). Prices in total industry excluding energy rose by 0.6 percent y-o-y.