FX.co ★ Euro Area Producer Inflation Moderates in May

Producer prices in the Euro Area rose by 0.2% month-over-month in May 2026, following an upwardly revised 0.7% increase in April and matching market expectations. Energy prices declined by 1% in May, after a 0.2% drop in April, as oil prices returned to pre-war levels. Excluding energy, producer prices climbed 0.7%, easing from a 0.9% gain in the previous month.

Among the main components, price growth slowed for intermediate goods (1.4% vs 1.8%) and capital goods (0.2% vs 0.4%). Prices for non-durable consumer goods edged down 0.1%, while inflation for durable consumer goods remained steady at 0.3%, unchanged from April.

Across the Eurozone’s largest economies, producer price growth moderated in Germany (0.2% vs 1.2%) and Spain (0.9% vs 2%), while prices fell in Italy (-0.5% vs 0.1%) and France (-0.3% vs -2%). On an annual basis, producer prices increased 5.9% in May, the strongest rise since March 2023.