January 25, 2023 08:07 GMT
Swift Decline in PPI, Core Pressures Ease Further
SPAIN DEC PPI -1.7% M/M; NOV -2.4%r M/M
SPAIN DEC PPI +14.7% Y/Y; NOV +20.5%r Y/Y
- Spanish PPI eased further in December, implying a lower eurozone print due next Friday.
- Prices declined by -1.7% m/m, easing 5.8pp to an annualised print of +14.7% y/y. This is a fraction of the +47.0% y/y peak recorded in March as base effects filter in swiftly.
- Energy prices accounted for the bulk of downward pressure, whilst intermediate goods inflation also eased as chemical costs declined. Non-durable consumer goods continue to increase as European food price inflation remains elevated.
- With PPI firmly below Summer peaks, the focus for the ECB has shifted towards core consumer inflation data. PPI ex-energy eased for a sixth consecutive month, down 1.1pp at +11.1% y/y. Despite a lagged effect, this is a positive sign for easing core CPI in the eurozone in months to come.
Spain PPI Y/Y Rates (headline vs core):
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