Eurozone producer prices declined for the first time since late 2020 on sharp reduction in energy prices, data released by Eurostat showed on Wednesday.
Producer prices posted annual decline of 1.5 percent in May, in contrast to the 0.9 percent increase in April. Prices were forecast to fall 1.3 percent.
Excluding energy, producer price inflation eased to 3.4 percent from 5.1 percent in the previous month. The annual fall was driven by the 13.3 percent decrease in energy prices and 1.5 percent drop in intermediate goods prices.
Partially offsetting these declines, durable and non-durable consumer goods prices grew 6.7 percent and 9.6 percent, respectively. Capital goods prices increased 5.6 percent.
On a monthly basis, producer prices dropped at a slower pace of 1.9 percent after falling 3.2 percent in April. Economists had forecast a 1.8 percent drop.
