The statistics office Eurostat has new figures. Accordingly, producer prices in September were 12.4 percent lower than in the previous year.
In the Eurozone, prices at company level continue to fall sharply. In September, producer prices were 12.4 percent lower than a year earlier, as the Eurostat statistics office announced on Tuesday in Luxembourg. It is the most significant price decline since 2009. In August, producer prices fell by 11.5 percent. However, on a monthly basis, prices rose by 0.5 percent in September. This was expected.
Last summer, the prices that manufacturers received for their products increased by more than 40 percent year-on-year. The decisive factor was Russia’s war against Ukraine, which at times made energy and raw materials drastically more expensive. Since then, prices have fallen again.
Accordingly, energy prices fell most significantly year-on-year in September at 31.3 percent. Intermediate goods were also cheaper than a year ago. However, more had to be paid for durable, capital and consumer goods.
Producer prices also influence consumer prices, the development of which the European Central Bank (ECB) bases its monetary policy on. The ECB has raised its key interest rates sharply since last summer. Recently, the central bank stopped adjusting the interest rate screw due to lower inflation rates.
Source: Stern
