Eurozone producer prices fall

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Eurozone producer prices have fallen by 0.1% in July 2014 according to Eurstat, adding to concerns of Eurozone deflation.

The annual Eurozone inflation rate reached a five year low of 0.3%, compared to 0.4% the previous month.

Key factor for the decline in producer prices are energy prices, which dropped by 0,9%, while prices for intermediate goods, capital goods, durable and non-durable consumer goods remained stable.

The largest decreases in industrial producer prices compared to the previous year were observed in Belgium (-5.7%), Lithuania (-4.8%) and Slovakia (-2.9%), and the highest increases in Latvia, Romania and Sweden (all +0.2%).

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