Euro area producer prices fall sequentially in June, but rise year-on-year

Euro area’s industrial producer prices have dropped in the month of June on a sequential basis. According to Eurostat, the industrial producer prices dropped 0.1 percent. On a year-on-year basis, the producer prices rose 2.5 percent in the currency bloc.

The 0.1 percent sequential drop in industrial producer prices is mainly due to price declines of 0.3 percent in the energy sector and of 0.2 percent for intermediate goods, while prices stayed stable for durable consumer goods and rose 0.1 percent for capital goods and by 0.2 percent for non-durable consumer goods. Prices in total industry excluding energy stayed stable. The biggest drop in producer prices were seen in Greece and the Netherlands, while rises were seen in Latvia, Italy, Cyprus and Malta.

Meanwhile, the 2.5 percent rise in industrial producer prices in total industry was due to increases of 2.9 percent in both intermediate goods and in the energy sector. The rise was also due to 2.5 percent rise in non-durable consumer goods, 0.9 percent rise in capital goods and 0.6 percent rise in durable consumer goods. Prices in total industry excluding energy rose 2.2 percent. The largest rises were seen in Belgium, Cyprus and Luxembourg.