Free Trial

Further Core Goods Disinflation Looks Unlikely Despite Of April PPI

SPAIN DATA

Spanish April PPI was -6.6% Y/Y NSA (vs -8.2% prior). Excluding energy, PPI was flat on an annual basis (vs -0.1% prior).

  • Both consumer and capital goods PPI inflation continued to moderate in April, while intermediate goods remained in deflation.
  • However, with non-energy industrial (i.e. core) goods HICP at just 0.9% Y/Y in April and the EC’s industry expected prices metric having stalled in its decline in recent months, further material consumer price disinflation looks unlikely.
  • While energy PPI was -20.5% Y/Y in April, the reversal of covid-induced energy tax cuts in 2024 means energy HICP inflation has turned positive in the last two months, most recently 5.0% Y/Y in April.

121 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.

Spanish April PPI was -6.6% Y/Y NSA (vs -8.2% prior). Excluding energy, PPI was flat on an annual basis (vs -0.1% prior).

  • Both consumer and capital goods PPI inflation continued to moderate in April, while intermediate goods remained in deflation.
  • However, with non-energy industrial (i.e. core) goods HICP at just 0.9% Y/Y in April and the EC’s industry expected prices metric having stalled in its decline in recent months, further material consumer price disinflation looks unlikely.
  • While energy PPI was -20.5% Y/Y in April, the reversal of covid-induced energy tax cuts in 2024 means energy HICP inflation has turned positive in the last two months, most recently 5.0% Y/Y in April.