In July, Eurozone producer prices experienced a second consecutive month of growth, primarily driven by increased energy costs, according to data released by Eurostat on Wednesday.
Producer prices saw a month-on-month growth of 0.8%, following a 0.6% increase in the previous month. This exceeded expectations, which had forecast a rise of 0.3%.
When energy prices are excluded, producer prices actually decreased by 0.1%, thereby nullifying June's 0.1% growth.
Breaking down the producer price index, the energy sector witnessed the most significant month-on-month surge, with a 2.8% increase. In contrast, the prices for durable and non-durable consumer goods, as well as intermediate goods, each fell by 0.1%. Meanwhile, the prices for capital goods remained stable.
On an annual basis, the decrease in producer prices slowed to 2.1% from June’s 3.3%, outperforming economists’ forecasts of a 2.5% decline.
In the broader EU27 region, producer prices rose by 0.8% month-on-month and declined by 1.9% year-on-year in July.
