Producer prices fall more than expected-report
2022.12.02 05:22
Producer prices fall more than expected-report
Budrigannews.com – Producer prices in the euro area fell more than forecast in October, and declined sharply in the month and year, underscoring economists’ expectations that inflation could peak in the near future.
According to the Statistical Office of the European Union, prices in factories in 19 countries sharing the euro fell by 30.8 per annum in October, and by 41.9 per annum in September. The producer price has not decreased for the first time from month to month since May 2020.
Reuters interviewed economists, and they found out that they had forecast a decline of 2 months and an increase of 31.5 in annual terms. Monthly drops in the index in general were primarily caused by a decrease in the cost of energy by 6.9 US dollars.
The increase in prices for energy resources decreased from 108.0 in September to 65.8 for the year.
Producer costs are an early sign of the dynamics of buyers’ costs, which the European National Bank should keep at an average level of 2.0.
Consumer prices fell much more than expected in November, strengthening arguments about a slowdown in the growth of EU rates in the coming month, as well as the hope that prices have already peaked at astronomical growth rates.
