FXstreet.com (Barcelona) - Inflation at factory level has continued declining in December, posting its fifth consecutive month on month drop, after having peaked in May, according to data released by Eurostat.

Producer prices have posted a 1.3% decline from November to December, following a 1.9% drop in the previous month. Prices in the energy sectors were the main deflationary contributor, 3.7% down month on month. Excluding energy, prices of all other products have dropped 0.6%.

Year on year, producer prices have risen at a 1.6% pace in December, down from 3.3% in November and 6.3% in October.

Producer prices index, according to Eurostat, has risen at a 6.2% year on year rate in 2008 as a whiole, well above the 2.8% rate in 2007.