Producer inflation continues to fall in the euro area

The European Statistical Office (Eurostat) has published the PPI data for October for the European Union (EU) and the Eurozone.

Consequently, while the EU PPI decreased by 2.5% in October compared to the previous month, it increased by 31.2% compared to October 2021.

In August, the eurozone PPI rose 43.3 percent on-year, reaching the highest level since records began. In September there was an increase of 41.4 percent compared to September 2021.

MARKET BELOW EXPECTATIONS

In the Euro Zone, the PPI decreased 2.9 percent monthly in October and increased 30.8 percent annually. Market expectations were for the PPI to rise 32.1 percent annually.

In that period, producer prices increased 65.8 percent in the energy sector and 17.4 percent in intermediate goods on an annual basis in the euro area. Among EU countries, the PPI increased the most in Hungary with 68%, Slovakia with 59.3% and Latvia with 57.9% in October.

The annual PPI was determined to be 35.5 percent in Germany, 33.7 percent in Italy, 26.2 percent in Spain, and 24.7 percent in France. (AA)