EZ PPI: Disinflation in Core Goods Continues

Eurozone PPI for April remained in deflation for the eleventh successive month, although the energy component saw another increase in the Y/Y rate for the second consecutive month (entirely driven by base effects). This pushed the Y/Y PPI figure up to -5.7% Y/Y, although below consensus expectations (vs -5.3% consensus, -7.8% prior).

• The energy component remained in deflation at -14.7% Y/Y, the highest since June 2023, although as noted above this was driven entirely by base effects as on a monthly basis it saw its sixth consecutive fall at -3.6% M/M.
• Intermediate goods remained in deflation on an annual basis, albeit at a slower pace, for the twelfth consecutive month , printing -3.9% Y/Y (vs -4.8% prior).
• Meanwhile, Capital goods, Durable and non-durable consumer goods saw prices increase on an annual basis, although at either lower rate or unchanged rates: +1.5% (vs +1.9% prior), +1.0% (vs +1.0%), and +0.9% (vs +1.2% prior) respectively, suggesting further downside pressure on non-energy industrial goods in the coming months HICP readings.