FX.co ★ Eurozone Producer Prices Continue To Fall Sharply

March witnessed a notable decline in producer prices within the Eurozone for another consecutive month. This is largely credited to a sustained drop in energy prices, according to data released by Eurostat.

Year-on-year, producer prices saw a dip of 7.8 percent in March. This is a slightly less drastic fall than the revised 8.5 percent decrease experienced in February. The drop aligns closely with the predicted 7.7 percent decline.

When excluding energy from the equation, the producer price index experienced a relatively modest fall of 1.3 percent in March.

The data further showed that energy prices underwent a significant 20.0 percent drop compared to a 21.3 percent plunge in the preceding month. Concurrently, prices for intermediate goods fell by 4.8 percent.

In contrast, both durable and non-durable consumer goods noted an increase in prices by 1.0 percent and 0.9 percent, respectively. Also on the rise were the prices of capital goods, with a surge of 1.9 percent.

Assessing the data on a monthly basis, producer prices decreased 0.4 percent in March, compared to a 1.1 percent drop in the previous month. This pattern aligns with the anticipated trend.

Lastly, producer prices in the EU27 experienced a 0.5 percent monthly decline and a 7.6 percent annual decline in March.