Over the year, from January 2023 to January 2024, prices plummeted by 8.6 per cent in the euro area and 8.4 per cent in the EU, underscoring a significant reduction in industrial costs.

Breaking down the data, the euro area saw a decrease of 0.2 per cent for intermediate goods and a sharp 2.9 per cent drop for energy in January 2024 compared to the previous month. Durable consumer goods also fell by 0.2 per cent, while non-durable consumer goods bucked the trend with a 0.3 per cent increase. When excluding energy, total industry prices in the euro area inched up by 0.2 per cent.

Similarly, the EU experienced a slight 0.1 per cent decrease for intermediate goods and a 2.5 per cent fall for energy. Prices for durable consumer goods dipped by 0.1 per cent, but non-durable consumer goods saw a modest 0.2 per cent rise. The total industry, excluding energy, also reported a 0.2 per cent increase across the EU.

Country-specific data revealed significant monthly price decreases in Slovakia (14.3 per cent), Poland (3 per cent), and Austria (2.2 per cent), while the most substantial increases were observed in Estonia (5.3 per cent), Ireland (4 per cent), and Czechia (2.4 per cent).

On an annual basis, comparing January 2024 with January 2023, the euro area saw prices decrease by 5.8 per cent for intermediate goods and a dramatic 21.3 per cent for energy. However, there was an increase of 1.1 per cent for durable consumer goods and 2 per cent for non-durable consumer goods. Excluding energy, total industry prices fell by 1.5 per cent.

The EU mirrored these trends with similar decreases and increases in the respective categories. The largest annual declines in industrial producer prices were seen in Ireland (21.5 per cent), Bulgaria (17.8 per cent), and Latvia (12.3 per cent), with notable increases in Luxembourg (15.0 per cent), Malta (0.7 per cent), and Slovenia (0.3 per cent).

Fibre2Fashion News Desk (DP)