Industrial producer prices fell by 0.3% for the euro area and for all members of the European Union (EU) for September, according to the latest figures
Industrial producer prices fell by 0.3% for the euro area and for all members of the European Union (EU) for September, according to the latest figures compiled by Eurostat.
The results have halted a deflationary pattern for industrial products, as for August prices decreased by 0.8% in the euro area, and 0.9% for the EU.
Compared to a year ago, industrial prices fell by 3.1% for September 2014 in the euro area, and 3.8% for the EU.
Energy Prices Play Part in Price Reduction
The reduction in industrial prices was mainly due to the continued fall in energy prices, which were reduced by 0.8% comparing September to August this year.
Brent Crude has crept over the $50 dollar per barrel today, higher then the September nadir price of around $47 dollars per barrel. In the third week in August, crude fell to below $44 per barrel.
The energy sector was followed by a month on month 0.5% fall in intermediate goods, and a 0.1% fall in durable consumer goods.
Prices remained stable for capital goods, and actually increased by a slender 0.1% for non-durable consumer goods.
In total prices in the industrial sector was calculated to have dropped by 0.2% for September, excluding energy prices.
In the EU, the 0.3% fall in prices was also attributed to energy prices, which tumbled by 0.7%.
The reduction in prices for intermediate and durable consumer goods, matched the figures for the euro area, at 0.5% and 0.1% respectively.
The European Central Bank (ECB) will be encouraged by the prices recovering compared to August. Inflation for August was 0.0% Eurostat revealed for October, increasing prices from -0.1% for September.
However, inflation in the EU is still falling short of the 2% figure, that is preferred by the ECB.
Ireland Suffer Largest Decrease in Prices
Ireland was calculated to have experienced the biggest fall in prices, by – 2%. They were followed by Slovakia on -1.3%, Lithuania -1.1%, Portugal -1.0%, Estonia and Spain who are both on -0.9%.
Belgium and Malta both reported 0.5% the industrial price increases, and France also recorded an increase by a slim 0.1%.
Commission Consults on Anti-Trust Laws
Meanwhile, trade regulations may receive a boost, as the European Commission has invited the public and stakeholders, to share feedback on potential EU legislation that enforces national competition authorities.
In 2004, the regulation environment was transformed through a regulation which allowed national competition authorities, and national courts, a key role in applying the EU rules on business practices and market abuses.
The Commission still believes that there is room for improvement, particularly surrounding enforcement powers.
This is to ensure that national authorities have the right tools, to detect and sanction violations of EU competition rules.
And to create leniency programmes, which encourage companies to come forward to display evidence of illegal business operations.
Euro in Slight Dollar Recovery
The euro reached just over the 1.088 mark to the dollar, after falling beneath 1.084 this morning.
Compared to the UK pound, the euro fell to approaching 0.704, before inching towards the 0.708 mark midway through this morning.