Euro zone PPI surprised to the downside in the month, coming in at 3.3% in the 12 months to November, down from both the 4.4% rate expected and October's 6.3% print.

Excluding energy cost increases (+6.3%), price inflation came to 2.3% year-over-year.

On a monthly basis, the price index contracted 1.9% in November, the sharpest fall noted since 1981 and nearly double the 1.0% decline expected following October's 0.8% pullback.

Eurostat also noted that energy sector costs saw subtantial declines in the month, falling 5.1% in December, the strongest decline recorded in 24 years. Conversely, capital goods prices rose 0.1% in the euro area, while durable consumer goods costs remained unchanged.

Written by CEP News European Staff in Frankfurt, This email address is being protected from spam bots, you need Javascript enabled to view it , edited by Nancy Girgis, This email address is being protected from spam bots, you need Javascript enabled to view it

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