Industrial Producer Prices Down Say Eurostat

Industrial producer price for the euro area have fallen by 0.3% for October according to the latest figures released from Eurostat.

For the whole of the European Union, prices also fell by at a slower pace of 0.2%.

Month on month there was a 0.1% fall for the euro area and the European Union, in comparison to the prices for September.

For October this year, in contrast to a year ago, producer prices fell by 3.1% and 3.5% for the euro area and the European Union respectively.

Energy Major Part of Price Fall

 In the breakdown of how the prices have fallen, energy and intermediate goods both were reduced by a month on month 0.4% in the euro area.

Non-durable consumer goods also suffered a price fall of 0.2%, while prices remained stable for both capital goods and consumer goods.

Excluding the depreciating  lower energy prices, producer prices across industry fell by 0.2%.

In the European Union, intermediate goods were the most negative influence on prices, falling by 0.4%.

Energy followed next, with a reduction of 0.3%, and non durable consumer goods fell by 0.1%.

In a carbon copy of the euro area, prices remained stable for both capital goods and consumer goods. And excluding energy prices, the industry costs fell by 0.2%.

Ireland had to take the lowest producer price fall of 1.1%, and they were followed by Spain and Hungary that both saw their industry expenses reduced by 0.7%.

The only price increases that Eurostat found were in Sweden, which had the highest increase of 0.7%, and their neighbours Denmark saw prices lift by 0.5%. While Estonia enjoyed a rise of 0.4%, and France also saw a slender rise of 0.1%.

Figures Follow Inflation Falls

The industry prices were in keeping with the flash estimate that inflation has fallen by 0.1% in the euro area for November, the same inflation figure that was recorded for October.

At the ECB policy meeting, which will take place today, boosting inflation to the European Central Bank’s 2% target, will be one of the priorities to be discussed.

An increase in the Quantitative Easing programme is expected to be announced  in the attempt an increase in prices via the money supply, alongside a cut in the deposit rate for holding euros, possibly down to 10 base points.

Deal Made with Liechtenstein Over Bank Accounts

The European Parliament has endorsed a deal between the European Union and Liechtenstein, that will provide barriers to EU citizens holding money in bank accounts, to hide their assets from the tax authorities.

Starting in 2018, there will now be an automatic free flow of information on bank accounts of residents from both parties.

Last month it was agreed that tax fraud had to be stamped down upon. And the information that will be exchanged will include information on incomes, interest and dividends, account balances, and proceeds from the sale of financial assets.

Member states and Liechtenstein tax regimes will now be able to identify the taxpayers concerned, administer and enforce their tax laws in cross-border situations, and assess the likelihood of tax evasion being perpetrated.

Also, it is hoped that any further investigations on tax fraud and evasion cases will be avoided.