Producer prices in Europe drop faster than expected
Producer prices of the euro zone experienced their sharpest decline since 2008 this March. According to the data published on May 5, the fall was deeper than expected.
Eurostat stated that factory gates prices in 19 different countries lost about 1.5%, getting to the 2.8% year-on-year reduction. This is the sharpest monthly reduction since November of 2008.
Experts surveyed by Reuters forecasted a 1.3% monthly reduction and 2.6% yearly reduction.
Producer prices are connected especially close to the inflation, since if the deviations are not rapidly absorbed by the retailers, all the changes impact the consumer prices. Obviously, they also depend on the energy market, which contracted 5.5% month-on-month this March.