July 04, 2022 09:00 GMT
Datamarkets-real-timeData BulletEuropean Central Bank Market NewsBulletMarketsFixed IncomeForeign Exchange
EUROZONE MAY PPI +0.7% M/M (FCST +0.9% M/M); APR +1.2% M/M
EUROZONE MAY PPI +36.3% Y/Y (FCST +36.6%); APR +37.2% Y/Y
- Eurozone factory-gate inflation saw some relief in May, slowing by 0.9pp to +36.3% Y/Y. Consensus was looking for a softer 0.5pp slowdown.
- This is the first deceleration in annualised PPI since May 2020.
- On the month, PPI rose at 0.7%, a 0.5pp reduction on the April rate and the smallest monthly uptick since February 2021.
- Despite continued inflation in intermediate goods (+1.7%), non-durable consumer goods (+1.3%) and durables (+0.9%), capital goods rose by only +0.6% and energy sector goods saw prices contact by 0.2% month-over-month, providing the key downwards pressure on the headline print.
- This will be welcome news for the ECB as the price pressure of global energy prices looks to be easing for the second consecutive month, feeding into their narrative that headline inflation will begin slowing by year end.
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