Euro area producer prices fall in March as energy prices continue to retreat

Factory gate prices in the euro area fell back by more than expected at the end of the first quarter, amid a decline in energy prices.

According to Eurostat, producer prices in the single currency bloc fell at a month-on-month pace of 1.6% in March, as energy prices retreated by 4.8%.

In annual terms, producer prices advanced at a clip of 5.9%, versus a rise of 13.3% during the previous month.

Energy prices meanwhile were up by 0.7% year-on-year following a 17.6% gain during the previous month.

Aside from intermediate goods inflation, which fell by 0.4% on the month, prices rose in all other categories.

Prices for non-durable consumer goods increased by the most, up by 0.9%, while those of durable consumer goods rose by 0.3%.

Capital goods prices were 0.2% higher.