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Euro zone producer prices fall less than expected year-on-year in November

FILE PHOTO: A woman walks next to a poster reading "The best team. With distance." in front of a BMW factory as the spread of the coronavirus disease (COVID-19) continues in Munich

BRUSSELS (Reuters) – Euro zone producer prices fell year-on-year in November because of a slump in energy prices, but fall was smaller than expected thanks to more expensive capital and durable consumer goods, the European Union’s statistics office’s data showed on Wednesday.

Prices at factory gates in the 19 countries sharing the euro rose 0.4% month-on-0month in November for a 1.9% year-on-year fall. Economists polled by Reuters had expected a 0.1% monthly rise and a 2.2% annual decline.

The overall producer price index was pulled down by a 7.5% year-on-year fall in energy prices, despite prices of durable consumer goods rising 1.2% year-on-year.

Economists see producer prices as an early indication of trends in consumer prices which the European Central Bank wants to keep below, but close to 2% over the medium term and has struggled for years to accelerate sluggish price growth.

(Reporting by Jan Strupczewski)

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