Retail activity across the eurozone weakened slightly in February, while a sharp drop in producer prices added to signs that inflationary pressures in the bloc are beginning to cool.
Retail sales in the eurozone fell by 0.2% in February compared with the previous month, following flat growth in January. The figures were in line with market expectations. The decline was driven largely by a 0.5% drop in sales of food, beverages and tobacco, bringing to an end a two-month period of growth.
Sales of non-food goods remained unchanged after two consecutive monthly declines. At the same time, fuel sales rose by 0.7%, reversing a 0.8% fall recorded in January.
Among the region’s largest economies, Germany saw retail sales decrease by 0.6%, while the Netherlands recorded a 0.3% decline. In France, sales edged down by 0.1%. Italy and Spain reported no change over the month. On an annual basis, growth in retail sales slowed to 1.7%, down from 2.1% in the previous month.
Producer prices also added to downward pressure on inflation. In February, they fell by 0.7% month on month — the sharpest decline since April 2025 — after rising by 0.8% in January.
Energy prices dropped by 2.4%, following a 1.3% increase a month earlier. Prices for non-durable consumer goods fell by 0.2%. Growth in intermediate goods prices slowed to 0.3% from 1.0%, while capital goods prices rose by 0.3%, down from 0.6%. Durable goods prices increased by 0.2%, compared with 0.8% previously.
The steepest declines in producer prices were recorded in Spain, down 3.1%, and Ireland, down 2.6%. Germany saw a 0.5% fall, while prices in France declined by 0.2%. On an annual basis, producer prices dropped by 3%, marking the largest decrease since October 2024.
Taken together, weaker retail sales and falling producer prices point to a continued easing of inflationary pressures across the eurozone.
