Euro area producer prices slip in April, as energy costs ebb

Factory gate prices in the single currency bloc fell back in April as energy cost pressures continued to ebb.

Eurozone producer prices were unchanged from the month before, Eurostat reported, as energy costs fell by 0.4% in comparison to March.

Prices of intermediate goods on the other hand were up by 0.2% on the month and those for capital goods by a tenth of a percentage point.

Durable goods prices also increased by 0.1% month-on-month.

Versus a year ago, the rate of increase in producer prices slipped from 2.1% to 2.0%.

Economists had forecast a rise in producer prices of 0.2% on the month and of 2.4% in comparison to a year ago.

Energy prices had also declined in February and March, albeit after a sharp run-up during the last quarter of 2017.

By countries, inflation pressures on a year-on-year basis retreated in France (from 2.6% to 2.2%) and Italy (from 2.2% to 1.4%) but accelerated in Germany (from 3.2% to 3.6%) and Spain (from 1.3% to 1.9%).