BREAKING: EU PPI inflation lower than expected

Producer Price Index for the EU for March:

• PPI YoY:  5.9% YoY vs 6.2% YoY expected (13.2% YoY previously)
• PPI MoM: -1.6% YoY vs -1.6% YoY expected (-0.5% YoY previously) 

Data came better than expected with PPI inflation rate at 5.9% YoY versus 6.2% expected. Once again, energy is the primary driver responsible for the decline in producer prices this month. However, if we exclude energy prices, the overall prices across various industries in the euro area actually increased by 0.2%.

Here is a detailed breakdown of core components with MoM change:

• Energy prices -4.4%
• Intermediate goods -0.4%
• Capital goods +0.2%
• Durable consumer goods +0.2%
• Non-durable consumer goods +0.8%