Factory producer prices remained unchanged in April compared to the previous in the 19 countries of the Eurozone, according to an announcement on June 4 by the European Union’s statistics office, Eurostat.
Compared to the same period last year, industrial producer prices were 2.0 % higher in April, mainly caused by a sharp increase in energy prices. On a month-on-month basis, energy prices were down 0.4 %, but up 3.8 % year-on-year.
A monthly comparison by the main industrial grouping and by Member State industrial producer prices remained stable in the Eurozone in April compared with the previous months of March, as prices increased by 0.2% for intermediate goods and by 0.1% for capital and durable consumer goods. Prices remained stable for non-durable consumer goods and decreased by 0.4% in the energy sector. Total industry prices, excluding energy, rose by 0.1%.
Durable consumer goods, such as fridges and televisions, were 0.9 % more expensive year-on-year, while non-durable consumer goods prices were up by 0.5 %. Compared with March, both of the goods groups were 0.1 % more expensive in April.
The data comes at a crucial time for the European Central Bank as it decides on the future of the stimulus programme of quantitative easing, in which it is purchasing a large share of the bloc’s government bonds to the tune of €2.55 trillion. Along with the bloc’s higher than expected inflation at 1.9% for May, the ECB may have to rethink the effectiveness of the quantitative easing programme and the tool’s effectiveness.