Eurozone producer inflation slows to 2-year low

ANKARA

Producer inflation in the euro area decreased to a two-year low in March, according to official data released on Thursday.

Industrial producer prices increased 5.9% year-on-year in March, easing from a 13.3% hike in February, Eurostat said.

The cost of energy rise rose at a softer pace, up 0.7% in March compared to 17.6% in February, as well as intermediate goods 5.8%), capital goods (6.7%), and both durable (8.2%) and non-durable consumer goods (13.4%).

Excluding energy, producer price inflation cooled to 8% in March, down from 10.2% in the previous month.

On a monthly basis, industrial producer prices in the eurozone dropped 1.6%.

Producer inflation in the EU also slowed to 7% in March, more than half of it was in February (14.5%).

The largest yearly gain was seen in Hungary (48.1%), Slovakia (32.9%), and Latvia (27%), on the other hand, producer prices fell significantly in Ireland (-29.9%), Greece (-10.8%), Portugal (-3.9%), and Spain (-1.0%).