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Eurozone PPI slips in June as energy costs fall

Producer prices declined -0.3% month over month, while ex-energy prices rose 0.2%, pointing to easing but still-persistent underlying inflation.

Reported · Written up by our desk · Inflation

Eurozone producer prices fell in June, with lower energy costs outweighing price gains across much of the rest of industry, according to Action Forex. The report said industrial producer prices dropped -0.3% month over month, reversing May’s +0.2% increase and matching expectations.

On an annual basis, the producer price growth rate slowed to 4.6% from 5.9%, the outlet reported. The decline was driven largely by the energy sector, where producer prices fell -1.5% month over month.

Underlying price pressures remained positive despite the headline drop, Action Forex added. Intermediate goods prices rose 0.3%, capital goods and durable consumer goods each increased 0.2%, and excluding energy producer prices increased 0.2%.

The data were described as consistent with recent PMI survey signals that inflation pressures are moderating, offering potential reassurance for the ECB. However, persistence of positive ex-energy inflation suggests pipeline pressures are easing gradually rather than disappearing, the outlet said.

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