MNI: EUROZONE DATA: PPI (Jun 2019) Preview - 10:00...>

MNI: EUROZONE DATA: PPI (Jun 2019) Preview - 10:00 BST

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- Bloomberg Consensus: -0.3% m/m, 0.8% y/y; Previous (May): -0.1% m/m, 1.6% y/y

- Annual PPI infl is expected to fall below 1% for the first time since Nov 2016

- Since peaking at 4.9% y/y in Oct, producer price pressures have cooled rapidly

- On an annual basis, energy price infl moderated to 3.1% in May - falling by

more than half from 6.4% in Apr

- The capital goods PPI has been on a gradually increasing trend over the past

year, but nevertheless sat at just 1.6% in Jun

- Producer price growth for consumer goods has also been rising steadily, albeit

to still-weak rates in Jun of just 1.4% (durables) & 0.9% (non-durables)

- So the decline in the headline PPI has been driven primarily by energy as well

as intermediate goods (0.8% in Jun - down from a recent high of 3.2% in Aug)

- With base effects set to drive energy infl even lower, the headline annual PPI

rate looks on course to fall close to zero in the coming months...

- ...dragging HICP infl further down & keeping the ECB in expansionary mode