Producer prices across the Eurozone dropped in February, showing that the cost businesses pay to produce goods became cheaper before possible energy-related price increases expected in March.
According to Eurostat, industrial producer prices fell 0.7% in the euro area and 0.5% across the EU compared to the previous month.
The biggest reason for the drop was a 2.4% fall in energy prices, which helped lower overall production costs. However, some categories still saw small increases, including durable goods, intermediate goods, and capital goods.
Among individual countries, the sharpest monthly declines were seen in:
- Spain (-3.1%)
- Ireland (-2.6%)
- Portugal (-1.8%)
Meanwhile, the highest increases were recorded in:
- Croatia (+3.8%)
- Finland (+2.7%)
- Lithuania (+1.8%)
Compared with a year earlier, producer prices were down 3% in the eurozone and 2.7% in the EU, suggesting inflation pressures in manufacturing had eased for now.
Still, experts are watching closely, as rising energy costs in March could quickly reverse this trend.
Source: AfricaNews
