Tomorrow's Economic Releases: Euro-Zone PPI Holds Over Empty Schedule
Euro-Zone Producer Price Index (MoM) (MAY) (09:00 GMT; 05:00 EST)
Outlook: Given that energy and raw material costs cling onto near-record highs, Euro-zone producer prices are expected to rise 0.3% in May. Producers have been effectively passing the costs onto consumers, so as to conserve their own profit margins; but this may not be a viable option in the near future. Consumer confidence for the same month was able to rise to a -9 figure, from -10, in its respective read; but higher lending rates and new highs in gasoline receipts are likely to undo this. Rising inflation, as measured from the producers perspective, supports the view from the consumers perspective. Mays annualized consumer price index measure accelerated to 2.4%, while the core calculation also notched higher. Together, these indicators make it more likely that the European Central Bank will consider raising rates when they meet this week, despite the market consensus that officials will hold the benchmark rate at 2.75%.
Previous: Prices paid for goods at the wholesale level in the Euro-zone rose higher than in April by 0.8%, versus expectations of 0.7% and March's 0.5%. A 0.4% rise in core PPI indicated that it took more than higher energy costs to cause the increase, although energy did jumping 2.1% as oil prices remained near record highs. Intermediate goods prices gained 0.8% due to accelerating raw materials costs for products such as steel.