Producer Prices Take a Dive

According to a preliminary report by Eurostat released on Tuesday, the producer price index (PPI) experienced a 1.6% decline in both the Eurozone and the European Union in March compared to the previous month. Annually, there was a slight increase, with producer prices rising by 1.9% in the euro area and 2.1% in the EU.

Sector-wise Analysis

Energy Sector Hit Hardest: The most significant monthly decrease was observed in the energy sector, with prices plummeting by 5.8% in the Eurozone and 5.5% in the EU.

Mixed Trends in Other Sectors: While prices for capital goods saw a modest increase of 0.1% in the Eurozone, durable consumer goods rose by 0.2%, and non-durable consumer goods by 0.5%. Intermediate goods remained stable in the Eurozone, whereas in the EU, prices for intermediate and durable consumer goods increased by 0.1%, and non-durable consumer goods by 0.5%, with capital goods prices unchanged.