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Euro zone Aug producer prices edge up month-on-month as expected, plunge year-on-year
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BRUSSELS (Reuters) – Euro zone producer prices edged higher as expected month-on-month in August and plunged year-on-year on a sharp drop in energy prices, data showed on Wednesday.
BRUSSELS (Reuters) – Euro zone producer prices edged higher as expected month-on-month in August and plunged year-on-year on a sharp drop in energy prices, data showed on Wednesday.
The European Union’s statistics office Eurostat said prices at factory gates in the 20 countries sharing the euro were 0.6% higher month-on-month in August, but 11.5% down against a year earlier, in line with economists’ expectations.
Month-on-month intermediate goods pulled the index down with a 0.4% decline, but energy prices rose 2.5%, pushing up the overall end result.
Year-on-year, energy prices were 30.6% lower and intermediate goods prices down 4.5%, more than offsetting more expensive capital goods and durable and non-durable consumer goods.
Producer prices are an early indication of trends in consumer inflation, which the European Central Bank wants to bring down to its target of 2.0% from 5.3% in August and 4.3% in September.
(Reporting by Jan Strupczewski)
Producer prices refer to the prices that producers receive for their goods and services, which can indicate trends in inflation and economic activity.
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power.
Monetary policy is the process by which a central bank manages the supply of money, often targeting inflation rates to ensure price stability.
Intermediate goods are products used in the production of final goods, which are sold to consumers.
Energy prices significantly impact overall producer prices, as they can influence production costs and consumer prices.
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