London CNN —European policymakers will have breathed a sigh of relief Wednesday as a key measure of inflation revealed the first drop in prices since 2020.
That’s the first time producer prices — which feed into prices paid by consumers — have notched a year-on-year decline since December 2020.
The drop was driven by a steep 13.3% annual fall in producer prices in the energy sector, the data showed.
According to June survey data published Tuesday, factory output in the euro area recorded its steepest fall since October.
The euro area economy slipped into a recession over the winter, and there have been further signs of weakness in the April-June period.
Persons:
who’ve, ” Cyrus de la Rubia
Organizations:
London CNN, Bank’s, ECB, Producers, Hamburg Commercial Bank
Locations:
Hamburg