Global| Aug 27 2007Spain’s PPI Eases Pace in July but Still Too Strong
Summary
Spain's price trends show tempered results only for investment goods. Overall PPI inflation is stronger over three months than for year/year trends. Intermediate goods trends are firm at around a 6% pace. Consumer goods price trends [...]
Spain's price trends show tempered results only for investment goods. Overall PPI inflation is stronger over three months than for year/year trends. Intermediate goods trends are firm at around a 6% pace. Consumer goods price trends are accelerating.
The impact of these various trends on the overall PPI is depicted in the sequential growth rate chart on the left. Year/year inflation is ever so gradually edging lower. But over 6 months and 3 months, inflation has flared to a stronger pace and to a pace that is above the year/year pace. That is usually a prescription for year/year acceleration as well. While not the largest of the Euro economies, Spain is still significant. Its price trends will not be encouraging to the ECB. But then again this is only the PPI not the favored CPI measure (HICP).
| m/m | Saar | ||||||
| SPAIN | Jul-07 | Jun-07 | May-07 | 3-Mo | 6-Mo | Yr/Yr | Y/Y Yr Ago |
| Total | 0.3% | 0.4% | 0.6% | 5.4% | 4.9% | 2.3% | 6.4% |
| Consumer Goods | 0.2% | 0.2% | 0.0% | 6.9% | 2.9% | 1.8% | 3.5% |
| Intermediate Goods | 0.3% | 0.6% | 0.6% | 6.0% | 6.5% | 5.5% | 7.0% |
| Investment Goods | 0.2% | 0.0% | 0.4% | 2.1% | 2.7% | 3.0% | 2.4% |
| HIPPX Constructions | -- | 0.5% | 0.6% | #N/A | #N/A | #N/A | 6.4% |
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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