Eurozone producer prices hit by sharp drop in energy

Factory gate prices in the single currency area dropped more quickly than expected last month, dragged down by the precipitous fall in energy quotes.

Producer prices decline by 0.9% over the month and at a 3.4% year-on-year clip in January, Eurostat reported.

The consensus estimate had been for a decrease of 0.7% on the month (3% on the year).

In comparison to December energy prices came off by an outsized 10.2%, alongside a 1.6% decline in the prices of intermediate goods and a 1.1% fall in those of non-durable consumer goods.

By countries, and in terms of monthly rates of change, the largest drop was registered by the Netherlands, where producer prices fell by 3.6%.

Belgium and Holland saw the largest decreases in year-on-year terms in January, with prices down by 8.4% and 10.9%, respectively.