Eurozone industrial producer prices fall in August

Euro area’s industrial producer prices dropped 0.2 percent sequentially in August, according to Eurostat estimates. On an annual basis, industrial producer prices fell 2.1 percent in the month. The month-on-month decline in the currency bloc is because of declines in price in the energy sector and intermediate goods.

Energy sector price dropped 0.8 percent month-on-month, whereas intermediate goods price fell 0.1 percent. Meanwhile, capital goods and durable consumer goods prices remained stable, whereas prices of non-durable consumer goods rose 0.1 percent. Excluding energy, prices in total industry stayed stable in the month, stated Eurostat.

Meanwhile, the decline in the annual prices in the currency bloc is also due to fall in the price of energy sector, intermediate goods and nondurable consumer goods. In August 2016, energy sector price fell 6 percent year-on-year, price of intermediate goods dropped 1.9 percent, while nondurable consumer goods prices declined 0.1 percent. On the other hand capital goods prices increased 0.5 percent, while prices of durable consumer goods rose 0.9 percent. Excluding energy, prices in total industry dropped 0.6 percent.