Eurozone producer prices register steepest drop in two years

(Sharecast News) - Producer prices across the eurozone slumped in April by their most in two years as energy price deflation accelerated significantly. According to Eurostat data on Thursday, wholesale prices across the single-currency region declined by 2.2% in April, following a revised 1.7% decrease in March.

This was a lot quicker than the 1.8% fall expected by economists and the steepest monthly drop since April 2023.

Energy prices fell 7.7% over the month, following a 5.8% decline in March, while prices for intermediate goods fell 0.1% after no change the previous month. Meanwhile, the rate of inflation was unchanged for durable consumer goods, and slowed for non-durable consumer goods slowed, while capital goods prices were steady over the month.

Compared with last year, the annual rate of eurozone producer price inflation slowed to just 0.7% from 1.9%. This was well under the consensus forecast of 1.2% as the rate of energy inflation eased to just 0.3% from 4.0%.