Eurozone Producer Prices Rise More than Expected

Eurozone industrial producer prices increased by 0.4% month-over-month in July 2025, exceeding market forecasts of 0.2% and following a 0.8% rise in June. The primary driver of this inflation was a 1.5% surge in energy costs, which followed a 3.3% increase the previous month. Additional upward pressure came from durable consumer goods, which rose by 0.2% (vs. 0.1%), and capital goods, which also increased by 0.1% (unchanged from June). Conversely, the prices of non-durable consumer goods were flat (vs. 0.1% in June), and intermediate goods prices declined for the third straight month, falling by 0.2%. On a year-over-year basis, producer price inflation eased to 0.2% in July from 0.6% in June, though it was still slightly above the consensus estimate of 0.1%.