FX.co ★ Eurozone Producer Prices See Sharpest Drop in 2 Years

In April 2025, industrial producer prices across the Euro Area experienced a significant decrease of 2.2%, marking the most considerable monthly drop since April 2023. This followed a revised decline of 1.7% in March and surpassed the anticipated market projection of a 1.8% reduction. The steep decrease was mainly attributed to a substantial 7.7% reduction in energy prices, which had already experienced a 5.8% drop in the preceding month. Meanwhile, prices for intermediate goods saw a slight decrease of 0.1%, following a period of stagnation in March. Conversely, non-durable consumer goods experienced a modest price increase of 0.3% (compared to 0.4% previously), while durable goods maintained a price hike of 0.1%, consistent with March's figures. Among the largest economies within the Eurozone, France (-4.3%), Italy (-3.0%), and Spain (-2.9%) reported the most pronounced monthly declines. On a year-over-year basis, producer price inflation significantly fell to 0.7% in April, a stark decrease from 1.9% in March.