In October 2025, the EU Industrial Producer Price Index (PPI) fell 0.3% year-on-year but rose 0.2% month-on-month, indicating continued easing of industrial inflation pressures, though signs of a minor short-term rebound remain. Over the past six months, the year-on-year PPI has shown a volatile downward trend, declining from 0.2% in May to -0.3% in October, reflecting a gradual moderation in overall industrial cost pressures—particularly evident in energy and intermediate goods. Energy prices dropped sharply by 3.3% year-on-year, the main drag on the overall PPI. This decline continues the downward trend since early this year, driven by shifts in global energy supply-demand dynamics and Europe’s ongoing energy transition. Meanwhile, intermediate goods prices edged down 0.2% year-on-year, signaling limited pressure on upstream manufacturing input costs. In contrast, capital goods and durable consumer goods prices rose modestly by 0.6% and 1.2% respectively, suggesting resilient equipment investment and final demand. Overall, while the significant drop in energy prices has played a key role in curbing industrial inflation, upward pressure from capital goods and durable consumer products warrants attention. Future risks to industrial inflation could emerge if energy prices stabilize or global supply chains face disruptions. Analysts note that current EU industrial inflation remains low and range-bound, urging policymakers to closely monitor core inflation trends to address potential structural shifts.