Eurozone producer prices fall more than expected in August

Producer prices in the Eurozone fell more than expected in August, data released on Friday showed.

According to figures published by Eurostat, the European Union’s statistics office, producer prices declined 0.8% month-on-month in August, compared with a 0.2% drop in July and with analysts’ expectations for a 0.6% fall.

On a year-on-year basis, producer prices fell 2.6% in August, compared with consensus for a 2.4% decline and with a drop of 2.1% in the previous month.

“It has been a turbulent few months for the Eurozone and today’s producer price index figures are just the latest in a line of what must be worrying data for ECB president Mario Draghi,” said Dennis de Jong, managing director at UFX.com.

“Consumer and industrial confidence are still negative and inflation has dropped below zero for the first time since Draghi’s record QE programme pulled the Eurozone out of its stupor.

“Yet, the slowdown in China may not have affected Europe as negatively as first feared and when Fed Chair Janet Yellen finally raises interest rates, the Eurozone could feel the benefit. However, Draghi may not be able to wait too long for Yellen to act.”