Euro Zone Producer Prices Fall at Speeds Unseen Since 1999

Eurostat reported that euro zone producer price fell 1.8% in the 12 months to February, outdoing both the 1.5% decline expected and January’s 0.7% contraction. Meanwhile, January’s figure was revised down from an initial estimate of -0.5%. February’s annualized fall is the most pronounced recorded since April 1999.

Energy price decline led the way in PPI falls, contracting 4.5% year-over-year, followed by intermediate goods prices, which slipped 3.0%. Conversely, both capital goods and durable consumer goods costs rose in the year at 1.8% and 2.0% respectively.

Between January and February, producer prices fell 0.5% as expected following the previous month’s 1.1% decrease, revised down from -0.8%.

The strongest decline was noted in intermediate goods, the price for which fell 0.9% between January and February. Energy prices slipped 0.7% over the same period, while non-durable consumer goods contracted 0.3%.