Spain’s producer prices declined at the fastest pace on record in May, driven by a slump in energy prices, preliminary figures from the statistical office INE showed on Monday. The producer price index dropped 8.4 percent year-on-year following a 4.9 percent decline in March. The latest fall was the biggest since the series began in 1975, the statistical office said. Producer prices in the energy sector plummeted 24.6 percent annually, which was also a record. The decline in prices of oil refining, and electric power production and distribution was the main reason for the slump.
Price for intermediate goods dropped 3.4 percent, which was the biggest fall since November 2009, and those for non-durable consumer goods decreased 1.8 percent.
Meanwhile, prices in consumer goods and capital goods production grew 1.7 percent and 0.7 percent, respectively. Prices for durable consumer goods production grew 1.5 percent.
Excluding energy, producer prices fell 0.6 percent year-on-year, which was the worst fall since August 2016. Compared to the previous month, producer prices decreased 3 percent, same as in March. That was the worst fall since January 2016.