MNI BRIEF: EZ Factory Gate Inflation A Fresh ECB Comms Problem

Eurozone producer prices rise by 5.2% between December and January, taking the annual pace of factory gate to 30.6%, from an upwardly-revised 26.3% in December. Energy prices accounted for much of the jump, rising by 11.6% in January for a 85.6% annual surge.

Excluding energy, PPI increased by 2.2% in the opening month of the year taking intermediate prices 11.7% above the same period of last year. Already priced into consumer prices across the eurozone, there will be little new in the latest data to surprise ECB policymakers, who have the task of navigating between the crisis in Ukraine and higher costs across the economy when the meet on March 10.

On top of rising inflation levels, unemployment fell to a record low 6.8% in January, as the economy continues to recover from the pandemic lows.