After the huge wave of inflation, a slight sigh of relief is in sight. Because in the eurozone, company-level prices have fallen again for the first time in a long time.
Producer prices fell by 1.5 percent in May compared to the same month last year, according to the statistics office of Eurostat in Luxembourg on Wednesday.
It is the first decrease since the end of 2020. Last summer, the prices that manufacturers receive for their products rose by more than 40 percent. The consequences of the war between Russia and Ukraine were decisive.
Especially with energy loss
Producer prices for energy in particular fell sharply in May. Compared to the same month last year, they fell by 13.3 percent. In contrast, they rose dramatically last year due to a looming energy crisis. Prices for semi-finished products have also fallen recently. Capital and consumer goods did rise in price, but not as much as in the previous month – so inflation fell.
Crucial benchmark
Producer prices influence consumer prices, on the basis of which the European Central Bank (ECB) adjusts its monetary policy. Since last summer, the ECB has raised its key interest rates sharply to combat high inflation. A further increase has already been announced for their next meeting at the end of July.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
