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Euro zone producer prices fall more than expected m/m in Oct

Published 12/02/2022, 05:02 AM
Updated 12/02/2022, 05:05 AM
© Reuters. FILE PHOTO: A customer shops in a supermarket in Nice, France, August 18, 2022. REUTERS/Eric Gaillard/File Photo

BRUSSELS (Reuters) - Euro zone producer prices fell more than expected month-on-month in October and decelerated sharply year-on-year, underlining economists' expectations that inflation may have peaked.

The European Union's statistics office Eurostat said prices at factory gates in the 19 countries sharing the euro fell 2.9% month-on-month in October for a 30.8% year-on-year rise, decelerating from an 41.9% annual increase in September.

It is the first time since May 2020 that producer prices have declined month on month. Economists polled by Reuters had expected a 2.0% monthly fall and a 31.5% year-on-year rise.

The overall monthly fall was mainly a result of a 6.9% monthly decline in energy price which pulled down the whole index. Year-on-year, energy price growth decelerated to 65.8% from 108.0% in September.

© Reuters. FILE PHOTO: A customer shops in a supermarket in Nice, France, August 18, 2022. REUTERS/Eric Gaillard/File Photo

Producer prices are an early indication of trends in consumer prices, which the European Central Bank want to keep at 2.0% in the medium term.

Consumer inflation in November eased far more than expected, raising hopes that sky-high price growth is now past its peak and bolstering, if not outright sealing the case for a slowdown in European Central Bank rate hikes next month.

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