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Eurozone producer prices rose less than expected in June, with subdued consumer goods prices softening a rise in energy costs and leaving overall price pressures muted, figures showed on Tuesday. European Union statistics office Eurostat said prices at factory gates in the 16 countries using the euro rose 0.3 percent month-on-month for a 3.0 percent year-on-year increase.
Economists polled by Reuters had expected a 0.4 percent monthly gain and a 3.1 percent annual rise. "Generally speaking it remains a fairly moderate inflation picture on average," said Giada Giani, analyst at Citigroup. The figures were boosted by energy prices, which were at low levels a year ago, creating a base effect. They increased 0.6 percent on the month for an annual gain of 6.0 percent. But modest monthly increases of durable and non-durable consumer goods, 0.2 percent each, suggested no inflationary pressure. Excluding energy and construction, producer prices were up 0.1 percent month-on-month and 1.9 percent annually.

Copyright Reuters, 2010

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