New signs of deflation from Europe. In July, the prices of industrial production in the euro area recorded a decrease of 0,1% compared to the previous month. This was announced this morning by Eurostat, specifying that in the EU 28 prices fell by 0,2%. In June, however, prices had grown by 0,2% in the euro area and by 0,1% in the Union. On an annual basis, industrial production prices fell by 1,1% in the Eurozone and by 1,3% in the EU. The drop in July, Eurostat points out, is mainly due to the 0,6% reduction in energy prices.
Average inflation also slowed down in the OECD area, in July it stood at 1,9% on an annual basis compared to 2,1% in June. The downturn, explains the Organization in a press release, was mainly driven by a slowdown in the growth of energy prices (2,3% from 3,1%), while food showed an unchanged dynamic (2,1% ).
In the euro area, the OECD recalls, in July inflation had weakened to 0,4%, and in August, according to Eurostat's preliminary estimates, it decreased further to 0,3%.
