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PPI Slows Post-August Energy Shock

EUROPEAN DATA
MNI (London)

EUROZONE SEP PPI +1.6% M/M, +41.9% Y/Y (=FCST); AUG +5.0% M/M, +43.4%r Y/Y

  • Industrial producer prices increased +1.6% m/m and +41.9% y/y in September, decelerating from the record high of +43.4% y/y recorded in August.
  • Energy again drove prices higher, up 3.3% m/m, albeit easing from the +11.8% m/m August energy price shock.
  • Yet the +0.9% m/m increase in non-durable consumer goods and +0.4% m/m increase in capital goods and durable consumer goods signals that PPI growth continues to be broad-based.
  • This alongside October CPI jumping to a record +10.7%, sees the ECB continuing to tighten monetary policy despite negative Q4 growth already anticipated.

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