When it comes to the price of goods for industrial producers, Europe simply can’t stop deflation.
According to the latest data released by Eurostat, the European statistical authority, industrial producer prices fell by 1% in both the Eurozone, and across the whole of the EU in January.
This marked an acceleration from December, when prices slid 0.8%. On a yearly basis, prices slipped 2.9%, and are at their lowest levels since late 2010. Here’s how that looks:
Both numbers were in line with the forecasts of economists, who had predicted the doom and gloom.
Individually, the countries where prices are struggling the most were the Netherlands, Greece, and Belgium. Prices in those states fell by 3.1%, 2.9%, and 2.7% respectively.
On a sector-by-sector basis, the energy sector — which is being dragged by the rock bottom price of commodities — was the worst performer. Prices fell 3.2% in January.
Eurostat’s figures follow on from Markit releasing its monthly data on the state of manufacturing in Europe on Tuesday. The Purchasing Managers Index showed that while manufacturing on the continent is growing, it’s doing so at its lowest levels in a year. Economists from market also pointed out that “deflationary pressures have intensified” in the sector.