Eurozone producer prices fall more than expected

(Sharecast News) - Wholesale factory prices across the eurozone fell by more than expected in May, declining for the third straight month, as the annual rate of inflation slowed to a five-month low. The producer price index fell by 0.6% in May, slowing significantly after a 2.2% drop in April - its strongest decline in two years - according to data out on Friday from Eurostat.

However, this was slightly more than the market had expected, with economists having pencilled in a fall of just 0.5%.

Energy prices fell by 2.1% in May following a 7.8% slump the month before, while intermediate goods deflation held steady aat -0.1%.

Capital goods prices were unchanged after growing by 0.1% previously, while inflation picked up for durable consumer goods to 0.3% from 0.1% and slowed for non-durable consumer goods to 0.2% from 0.3%.

The year-on-year change in the headline PPI eased to 0.3% from 0.7%, its lowest rate since December.