May 24, 2024 11:55 GMT
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.
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