France's producer prices dropped by 2.1% in April, marking the largest monthly decline in a year

⑴ In April, France's domestic producer prices fell by 2.1% month-on-month, reversing the revised growth of 1.9% in March and marking the largest decline since April last year. ⑵ This drop was mainly driven by a sharp decrease in prices for mining, quarrying, energy, and water (down 10.9%, versus an increase of 0.7% in March), mainly due to a significant fall in electricity prices (down 22.1%, versus a decline of 0.2% in March). This was influenced by lower wholesale market prices, stronger renewable power generation, and weak demand related to mild weather. ⑶ This decline was partially offset by a rise in natural gas prices (up 6.5%, versus an increase of 2.4% in March), attributed to Middle East conflict. ⑷ Meanwhile, prices for manufactured products rose at a slower pace (up 0.7%, versus an increase of 2.3% in March), with declines recorded in food, beverage, and tobacco (down 0.3%, versus a gain of 0.2% in March). Prices for coke and refined petroleum products also grew at a significantly slower rate (up 4.1%, after surging by 53.1% in March) as oil prices retreated in April following a March spike. ⑸ On a yearly basis, domestic producer prices jumped by 2.1%, the biggest gain since June 2023, after remaining flat in the previous three months.