Euro Area producer prices rose just 0.2% month-over-month in May 2026, cooling from an upwardly revised 0.7% gain in April. Energy costs fell and price pressure eased across most components, though the annual rate hit its highest mark since March 2023.
Euro Area producer prices increased 0.2% month-over-month in May 2026, following an upwardly revised 0.7% rise in April and matching market expectations.
Energy leads the cooldown
Energy prices fell 1% in May, extending a 0.2% decrease in April as oil prices returned to pre-war levels. Excluding energy, producer prices increased 0.7%, easing from a 0.9% rise the previous month.
The main components echoed the softer trend. Prices slowed for intermediate goods (1.4% versus 1.8%) and capital goods (0.2% versus 0.4%). Meanwhile, non-durable consumer costs decreased 0.1%, and durable consumer goods inflation held steady at 0.3%, unchanged from April.
National readings diverge
Across the Eurozone's largest economies, producer prices moderated in Germany (0.2% versus 1.2%) and Spain (0.9% versus 2%), while they declined in Italy (-0.5% versus 0.1%) and France (-0.3% versus -2%). The readings mark the latest country-level producer inflation prints for the bloc.
Yet the yearly picture stayed firm. On an annual basis, producer prices advanced 5.9% in May, the strongest increase since March 2023.
Source: TradingView
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