Eurozone PPI Jumps 0.6% mom, 4.9% yoy as Pipeline Inflation Pressures Build – ActionForex
Eurozone producer prices rose more than expected in April, adding to evidence that inflation pressures are continuing to build beneath the surface of the economy. Producer Price Index increased 0.6% mom, above expectations of 0.4% mom. Annual producer inflation accelerated sharply from 2.0% yoy to 4.9% yoy, slightly above forecasts of 4.8% yoy. The figures come just a day after stronger-than-expected Eurozone inflation data reinforced expectations for an ECB rate hike next week.
The details suggest inflationary pressures are becoming increasingly broad-based in Eurozone. Intermediate goods prices rose 1.8% mom on the month, indicating higher costs are continuing to move through supply chains. Capital goods and durable consumer goods prices both increased 0.3%, while non-durable consumer goods prices were unchanged. Energy prices actually fell -0.4% during the month, implying that the acceleration in producer inflation was not solely driven by energy costs.
Across the European Union, producer prices rose 0.7% mom and 4.9% yoy. Denmark, Croatia, and Belgium recorded the largest monthly increases, while France, Estonia, and Sweden saw declines.
| Indicator | March | April | Expectation |
|---|---|---|---|
| Eurozone PPI M/M | 3.4% | 0.6% | 0.4% |
| Eurozone PPI Y/Y | 2.0% | 4.9% | 4.8% |
| EU PPI M/M | 0.7% | ||
| EU PPI Y/Y | 4.9% |
Eurozone PPI Components (M/M)
| Component | April |
|---|---|
| Intermediate Goods | +1.8% |
| Capital Goods | +0.3% |
| Durable Consumer Goods | +0.3% |
| Non-Durable Consumer Goods | 0.0% |
| Energy | -0.4% |
Largest Monthly Changes by Country
| Country | PPI M/M |
|---|---|
| Denmark | +3.0% |
| Croatia | +2.7% |
| Belgium | +2.4% |
Largest Monthly Declines by Country
| Country | PPI M/M |
|---|---|
| France | -2.1% |
| Estonia | -0.8% |
| Sweden | -0.3% |
