Producer prices slip in Europe

Producer prices in Europe dropped slightly in October, slipping 0.5 percent in the eurozone and 0.6 percent in the European Union, Eurostat said Tuesday. Energy prices, down 1.4 percent month-to-month in the 17-member eurozone and 1.6 percent in the 28-member EU, led the declines although prices for non-durable goods and intermediate goods also declined. Prices for durable good were stable month-to-month, Eurostat said. Prices producers received were also down on an annual basis, declining 1.4 percent in the 17-member eurozone from October 2012 and 1.1 percent over the same period in the 28-member EU. Prices have been relatively flat in recent months, a sign of stagnation that prompted the European Central Bank to drop key lending rates in early November. Producer prices, a bellwether for the consumer price index, rose 0.2 percent in the eurozone and 0.1 percent in the EU from August to September. In August, industrial producer prices were flat in the 17-member eurozone and up 0.1 percent in the 28-member European Union, as flat or declining energy prices have been offsetting other gains. Producer prices excluding energy in the eurozone have dropped 0.3 percent in the eurozone and 0.1 percent in the EU from October 2012 to October 2013. Energy prices, on the other hand, are down 3.6 percent and 3.3 percent, respectively, in the eurozone and the EU in the same period. Producer prices for durable goods are up 0.5 percent and 0.3 percent, respectively, from October 2012. Prices for capital goods rose 0.5 percent in the eurozone and 0.6 percent in the EU, Eurostat said.