Euro-Zone Producer Prices Fall For the First Time in 5 Years
Euro-Zone January producer prices fell 0.8% m/m and 0.5% y/y, versus 1.2% y/y in the previous month. Our median was 0.4% y/y, so data were lower than expected, but not a total surprise after weak national numbers earlier this week. The breakdown shows that much of the deceleration is due to lower energy prices, which dropped 1.5% m/m and fell 2.7% y/y. excluding energy prices dropped 0.6% m/m and raised 0.1% y/y. Producer prices have come down sharply on a combination of lower energy prices and a sharp decline in economic activity. However, the base effects that are now helping to bring the headline rate down will reverse again in the second half of the year and for now we agree with the ECB that there is no serious risk of deflation in the Euro-Zone.
- Euro-Zone Producer Prices Drops the Most in 22 Years
- Euro-Zone Retail Sales Drop More than Forecast
- German Producer Prices Hold Flat in May, Annualized Rate Slips to 22-Year Low
- Euro-Zone Inflation Outlook Falls to the Lowest on Record in May
- Euro-Zone Inflation Confirmed at 1.1%, Unemployment Rises to Two-Year High (Update)