Eurozone PPI down 0.1 per cent YoY and 0.3 per cent MoM, buoyed by energy sector

The Eurozone Producer Price Index contracted by 0.1 per cent year-on-year in May in the eurozone, and stayed flat in the EU27. Prices in total industry excluding the energy sector increased by 0.5 per cent in the euro area and by 0.6 percent in the EU27, while energy prices decreased by a respective 1.8 per cent and 2.2 per cent respectively. In both zones intermediate goods fell by 0.5 per cent, while capital goods increased by 0.6 per cent.

The member states with the highest year-on-year increases in the total index were Estonia (up 6.7 per cent), Romania (up 4.9 per cent), and Latvia (up 2.1%), Denmark (up 1.7 per cent) and the largest decreases in Poland (down 2.1 per cent), Cyprus (down 2.0 per cent), and Hungary and Sweden (both down 1.5 per cent). The UK enjoyed a 1.5 per cent increase.

Month-on-month, PPI was down 0.3 per cent in both the eurozone and the EU27. Prices in total industry excluding the energy sector fell by 0.1 per cent in both zones, while energy prices fell by 0.8 per cent in the eurozone and 0.9 per cent in the EU27. In both zones, intermediate goods decreased by 0.2 per cent, while durable consumer goods and capital goods remained stable.

The member states with the highest month-on-month increases in the total index were Spain (up 1.3 per cent), Greece, Lithuania and Poland (all up 0.1 per cent), and the largest decreases in Estonia (down 3.6 per cent), France (minus 1.2 per cent), and Denmark and Cyprus (both down 0.8 per cent).