Eurozone Producer Price Inflation Slows in May

Eurozone industrial producer prices rose 0.2% year-over-year in July 2025, surpassing market expectations of 0.1% and following a 0.6% increase in June. Sharp price gains in non-durable consumer goods (1.9% vs 1.9% in June), capital goods (1.8% vs 1.7%), and durable consumer goods (1.7% vs 1.5%) were partially offset by declines in energy (-1.2% vs 0.0%) and intermediate goods (-0.3% vs -0.1%). On a monthly basis, producer prices increased 0.4% in July, above the forecasted 0.2% and following June’s 0.8% rise.

Eurozone producer price inflation accelerated to 0.6% year-over-year in June 2025, rising from 0.3% in May and slightly exceeding market expectations of 0.5%. Price growth strengthened for both durable consumer goods (1.5% vs. 1.4% in May) and non-durable consumer goods (2.0% vs. 1.9%). Energy prices declined at a slower rate (-0.1% vs. -1.5%), while capital goods inflation remained steady at 1.7%. Meanwhile, intermediate goods costs fell by 0.1%, marking the first decrease since November 2024. On a monthly basis, producer prices rose 0.8% in June, ending three consecutive months of steep declines.

Annual industrial producer price inflation in the Euro Area slowed to 0.3% in May 2025, down from 0.7% in the previous month, in line with market expectations. The deceleration was largely driven by a sharper drop in energy prices (-1.4% vs. -0.5% in April). Price growth also eased for intermediate goods (0.3% vs. 0.4%) and capital goods (1.6% vs. 1.7%). In contrast, inflation accelerated for both durable (1.4% vs. 0.9%) and non-durable consumer goods (1.9% vs. 1.8%). On a monthly basis, producer prices dropped by 0.6% in May, after a 2.2% decline in April.