January 05, 2023 10:00 GMT
PPI Softens Across Headline and Core
EUROZONE NOV PPI -0.9% M/M (FCST -0.8%); OCT -3.0%r M/M
EUROZONE NOV PPI +27.1% Y/Y (FCST +27.5%); OCT +30.5%r Y/Y
- Eurozone factory-gate inflation eased slightly more than anticipated in November. PPI fell by -0.9% m/m and softened by 3.4pp to +27.1% y/y.
- The fall in month-on-month prices was largely due to the -2.2% m/m decline in energy, followed by intermediate goods (-0.4% m/m). This is in line with signals of easing inflation in PMI data.
- With headline annualised PPI firmly below the August peak of +43.4% y/y, focus for the ECB has shifted towards core inflation data. The PPI uptick in durable consumer goods (+-0.2%), capital goods (+0.3%) and nondurable consumer goods (+0.6%) imply continued pressure on prices over the month, albeit being a softer-than-Oct uptick at +0.1% m/m ex. energy.
- PPI ex. energy declined by 0.9pp to +13.1% compared to Nov 2021, having peaked in May at +16.0% y/y. As such, eurozone inflationary pressures appear set to ease further in the upcoming months.
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