Eurozone producer prices rise more than expected in June

Producer prices in the eurozone rose more than expected in June, according to the latest data from Eurostat.

Prices were up 0.7% on the month versus economists’ expectations for a 0.4% increase and a 0.6% rise in May.

Eurostat said the 0.7% increase was driven by rises of 2.4% in the energy sector, 0.3% for intermediate goods and 0.1% for both capital goods and non-durable consumer goods.

Prices for durable consumer goods remained stabled, while prices in total industry excluding energy were up 0.2%.

On a year-on-year basis, prices were down 3.1%, which was less than the 3.5% drop economists had expected and the previous month’s 3.8% decline.

Dennis de Jong, managing director at UFX.com, said:“After last month’s disappointing numbers, ECB president Mario Draghi will be pleased with the respite provided by today’s producer price index results.

“It still remains to be seen how Europe will react to the UK’s decision to leave, but today’s boost shows some promising robustness at least.”