Global| Aug 03 2010Euro PPI Goes Flat
Summary
Yr/Yr the PPI is mostly holding to its gains but the monthly index has gone flat for two months running. Inflation to the extent it percolates anywhere is still present mostly in the intermediate goods sector where commodity prices [...]
Yr/Yr the PPI is mostly holding to its gains but the monthly index has gone flat for two months running.
Inflation to the extent it percolates anywhere is still present mostly in the intermediate goods sector where commodity
prices pressures are still lingering. Over three months intermediate goods inflation is spurting and accelerating
steadily to a 7.5% annual rate. In contrast for consumer goods and capital goods inflation is crawling along at a
pace of about 1.5% over the last three-months. While those results do reflect an ongoing acceleration in inflation
for those two sectors from about 0.2% or 0.3% Yr/Yr it’s clear that pressures from intermediate goods are not exactly
boiling over into finished products.
Inflation trends are mixed across the EU as well with Germany and France showing some acceleration while Italy and the UK show dissipating trends.
Growth has been somewhat irregular but inflation is looking far tamer and less troublesome that it was just a few months ago.
| Euro-Area and UK PPI Trends | ||||||
|---|---|---|---|---|---|---|
| M/M | Saar | |||||
| Euro-Area | Jun-10 | May-10 | 3-Mo | 6-MO | Yr/Yr | Y/Y Yr Ago |
| TotalxConstruct | 0.0% | 0.0% | 3.0% | 4.2% | 3.0% | -6.6% |
| Capital Gds | 0.0% | 0.1% | 1.6% | 0.9% | 0.3% | 0.4% |
| Consumer Gds | 0.1% | 0.2% | 1.5% | 0.9% | 0.2% | -2.3% |
| Intermediate&Cap Gds | 0.1% | 0.7% | 7.5% | 6.2% | 4.3% | -6.5% |
| MFG | -0.3% | 0.1% | 1.0% | 3.1% | 3.5% | -7.4% |
| Germany | ||||||
| Gy ExEnergy | 0.2% | 0.5% | 4.7% | 3.9% | 2.1% | -2.8% |
| France:Tot | ||||||
| Fr ExF&Energy | 0.0% | 0.2% | 2.7% | 2.9% | 1.5% | -2.8% |
| Italy | -0.6% | 0.1% | 0.4% | 2.2% | 3.8% | -7.8% |
| UK | -0.4% | -0.4% | 1.0% | 2.9% | 5.0% | -1.0% |
| Euro-Area Harmonized PPI ex construction | ||||||
Robert Brusca
AuthorMore in Author Profile »Robert A. Brusca is Chief Economist of Fact and Opinion Economics, a consulting firm he founded in Manhattan. He has been an economist on Wall Street for over 25 years. He has visited central banking and large institutional clients in over 30 countries in his career as an economist. Mr. Brusca was a Divisional Research Chief at the Federal Reserve Bank of NY (Chief of the International Financial markets Division), a Fed Watcher at Irving Trust and Chief Economist at Nikko Securities International. He is widely quoted and appears in various media. Mr. Brusca holds an MA and Ph.D. in economics from Michigan State University and a BA in Economics from the University of Michigan. His research pursues his strong interests in non aligned policy economics as well as international economics. FAO Economics’ research targets investors to assist them in making better investment decisions in stocks, bonds and in a variety of international assets. The company does not manage money and has no conflicts in giving economic advice.
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