October 04, 2022 09:00 GMT
EUROZONE AUG PPI +5.0% M/M (FCST +5.0%); JUL +4.0% M/M
EUROZONE AUG PPI +43.3% Y/Y (FCST 43.2%); JUL +38.0%r Y/Y
- Euro area factory-gate inflation accelerated to a fresh record high of +43.3% y/y in August, surging +5.0% m/m alone.
- This was largely in line with expectations, flagged by national PPIs following the renewed commodity price jump in August which has cooled again into September. August energy sector prices jumped a massive 11.8% m/m, whilst PPI ex. energy increased a more modest 0.3% m/m.
- Energy-price policy intervention continues to heavily impact headline inflation prints. The recent introduction of renewed measures in Germany and other states should cap off headline inflation from surging further for now.
- There will be no surprises in the data for the ECB, as it largely lags the September CPI data. However, the eye-watering headline numbers will not make deliberations any more comfortable for the Governing Council.
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