Producer prices - an indication of pipeline inflation - in the eurozone fell 0.4pc in May from a downwards-revised figure for April and rose 1.3pc year-on-year, European Union statistics office Eurostat reported today. Economists had forecast a month-on-month fall of 0.3pc and a year-on-year rise of 1.4pc. The figure for April was revised to a month-on-month fall of 0.5pc compared to its earlier figure of 0.4pc.
Eurostat said the decrease in May was mainly due to the energy sector where producer prices fell 1.8pc in May from April. Intermediate goods prices fell 0.1pc while capital goods prices were flat. Durable and non-durable consumer goods prices both rose by 0.1pc. In the EU as a whole, producer prices fell 0.3pc month-on-month and rose 1.5pc year-on-year.//www.fxcentre.com