Eurozone November PPI +0.5% vs +0.2% m/m expected

• Prior +0.1%
• PPI -1.7% vs -1.9% y/y expected
• Prior -0.5%

It’s a beat on estimates but this is very much a lagging data point at best. The consumer price index (CPI) precedes this and outweighs this on inflation trends, so just take this as a supportive or secondary data. If excluding energy, producer prices were only up 0.1% on the month in November last year.

The breakdown shows that prices for:

• Intermediate goods +0.3%
• Energy +1.8%
• Capital goods +0.1%
• Durable consumer goods +0.3%
• Non-durable consumer goods -0.2%

And when compared to the same month a year ago, producer prices were seen down 1.7%. However, much of that owes to a steep decline in energy prices (-7.4%). All other categories show an increase compared to the corresponding month one year ago, with total producer prices actually up 1.0% once you strip out energy.

This article was written by Justin Low at investinglive.com.