Tuesday, August 4, 2009

Decline in Energy Drives Euro PPI to Largest Drop in 27 Years

FX Street details:

The euro zone released today its producer price index (PPI) for the month of June, showing that the rate rose to 0.3% from the previous -0.2%, and the forecasted 0.2%. The reading inclined for the first time since more than a year. The rate was probably impacted by the high oil prices that had reached its highest level in June, surpassing $73.00 a barrel and increasing 1.4%.

On the year, the reading came inline with the expected reading of -6.6%, the sharpest yearly slump since compiling data in 1982, lower than the prior -5.8%. Energy prices plunged 15.1% from June 2008, due to the economic degradation that put downside pressure on prices, causing oil to reach below 34.00 a barrel.

Source: Eurostat

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