EMU PPI inflation drops faster than expected! ECB Panetta's dovish comments!

The June reading of PPI inflation in the eurozone indicated a second consecutive month of YoY decline in producer inflation. 

On an annualized basis, PPI growth is -3.4% (-3.1% was forecast) the earlier reading indicated -1.6% y/y. Source: Bloomberg Finance L.P. 

The m/m reading of -0.4% versus -0.3% expected and an earlier reading of -1.9%. 

Moreover, the ECB's Panetta commented on the latest macroeconomic environment and the ECB's decisions:

•  monetary policy can be conducted not only through hikes, but also by leaving interest rates on for longer
• we need to be cautious not to overly harm the economy vis-à-vis the tightening cycle
• inflation risks have become somewhat more normalized, while the economic outlook has worsened
• core inflation is slowing down
• if the macro environment demands it, the ECB will take further steps