Industrial producer prices decrease in EU & euro area in March

07 May '24

3 min read

Industrial producer prices decrease in EU & euro area in March

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In March 2024, industrial producer prices in the euro area and EU fell by 0.4 per cent and 0.5 per cent, respectively, continuing a downward trend from February.
Year-over-year, prices decreased by 7.8 per cent in the euro area and 7.6 per cent in the EU.
Energy prices saw significant drops, while consumer goods experienced modest increases.

Industrial producer prices in the euro area and the European Union (EU) experienced a decline in March 2024, according to the latest data released by Eurostat, the statistical office of the EU. In the euro area, industrial producer prices fell by 0.4 per cent, while the EU experienced a slightly larger decline of 0.5 per cent from February to March 2024. This follows significant drops in February, where the euro area saw prices decrease by 1.1 per cent and the EU by 1 per cent.

The year-over-year analysis paints a similar picture, with March 2024 witnessing a sharp 7.8 per cent decrease in the euro area and a 7.6 per cent fall in the EU compared to March 2023.

The breakdown by industrial grouping shows mixed results. In the euro area, March saw a modest increase of 0.1 per cent in prices for intermediate goods and durable consumer goods, and a 0.4 per cent rise for non-durable consumer goods. However, energy prices plummeted by 1.8 per cent. When excluding energy, total industry prices saw a slight increase of 0.2 per cent, as per Eurostat.

The EU mirrored this pattern, with intermediate goods, durable consumer goods, and non-durable consumer goods experiencing increases of 0.2 per cent, 0.2 per cent, and 0.4 per cent respectively, while energy prices dropped by 2 per cent. Excluding energy, the total industry also recorded a 0.2 per cent increase.

On a national level, March showed significant disparities. Bulgaria recorded the largest monthly decrease in industrial producer prices at 3.4 per cent, followed by Denmark and Greece both at 2.3 per cent, and Spain at 2.2 per cent. On the other hand, Ireland and Sweden each saw increases of 0.9 per cent, with Germany and Croatia both up by 0.2 per cent.

Looking at the year-on-year figures, March 2024 marked a 4.8 per cent decrease in prices for intermediate goods and a staggering 20 per cent decrease for energy within the euro area. Conversely, prices for durable and non-durable consumer goods increased by 1 per cent and 0.9 per cent, respectively. Overall, prices in the total industry excluding energy fell by 1.3 per cent.

In the EU, the annual picture showed a 5 per cent decrease in intermediate goods prices and an 18.6 per cent drop in energy prices. Durable consumer goods prices rose by 0.3 per cent, while non-durable consumer goods saw a 0.6 per cent increase. The total industry excluding energy marked a 1.5 per cent decrease.

Among the member states, Slovakia experienced the sharpest annual price decrease at 24.6 per cent, followed by Ireland at 19.8 per cent and Belgium at 13.4 per cent. Luxembourg saw a notable increase of 16.5 per cent, with Malta also recording a slight rise of 0.7 per cent.

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