For July
Provided by: EuroStat
Official Release: PDF

PPI y/y: 9.0%, forecast 9.1%, pr 8.0% (Jun), 7.1% (May), 6.1% (Apr),
5.8% (Mar)

European producer prices continued to increase in July, with the monthly rate up 1.1%, and the annual rate hitting a new record (series goes back 18 years) at 9.0%. Core prices were up an annual rate of 4.3%, compared to 4.0% in June. Crude oil was a main factor for the increase, it had climbed to its all time high near $147 at the start of July, though eased substantially in the latter part of the month. As other data around the world points out, inflation peaked in July and has eased in August. The ECB does not have plans to ease interest rates when it meets on Thursday morning, even though growth is slowing. It will be some time yet before the bank is comfortable with the rate of inflation.   

From the Release: "In July 2008 compared with June 2008, the industrial producer price index1 rose by 1.1% in the euro area2 (EA15) and by 0.9% in the EU272. In June3, prices increased by 1.0% and 1.4% respectively. In July 2008 compared with July 2007, industrial producer prices gained 9.0% in the euro area and 11.0% in the EU27."

The EUR/USD slid 100 pips overnight, to a fresh 6-month low. The 5 AM EST release stopped the main thrust of the fall, and the pair has been consolidating around the 1.45 level since.

For June
Provided by: EuroStat
Official Release: PDF

PPI y/y: 8.0%, forecast 7.9%, pr 7.1% (May), 6.1% (Apr), 5.8% (Mar)

Producer prices in the Euro-zone grew at an annual rate of 8% in June, the largest seen since records began in 1990. In May annual producer inflation was 7.1%. Prices were pushed up by energy costs which are up a record 21.4% compared to a year ago. On the month, producer prices were up 0.9%, with energy costs up 2.7%, slower than the 4.1% seen in May. The ECB acted by raising interest rates to a seven-year high of 4.25% last month, and even though it would like to see inflation numbers coming down, it may not be in much of a position to do anything this week.

From the Release: " Monthly Changes: In June 2008, compared with the previous month, prices in total industry excluding the energy sector rose by 0.4% in both the euro area and the EU27. Prices in the energy sector increased by 2.7% and 3.3% respectively. Intermediate goods gained 0.5% in the euro area and 0.7% in the EU27. In both zones, non-durable consumer goods rose by 0.3%. Capital goods increased by 0.2% in the euro area and by 0.3% in the EU27. Durable consumer goods remained stable in both zones.

Annual changes: In June 2008, compared with June 2007, prices in total industry excluding the energy sector increased by 4.0% in the euro area and by 4.6% in the EU27. Prices in the energy sector rose by 21.4% and 27.0% respectively. Intermediate goods gained 4.8% in the euro area and 5.8% in the EU27. Non-durable consumer goods increased by 4.8% and 5.3% respectively. Durable consumer goods gained 2.3% in the euro area and 2.4% in the EU27. Capital goods rose by 2.0% and 2.4% respectively."

For May
Provided by: EuroStat
Current Release: PDF

PPI y/y: 7.1%, forecast 6.7%, pr 6.1% (Apr), 5.8% (Mar)

Energy prices in May pushed Euro Area industrial producer price inflation to an annual pace of 7.2%, the highest since January of 1990 when the records began. Excluding energy, prices are up 0.3% on the month, and 3.8% on the year. Energy costs climbed 4.1% on the month, and 18% on the year. This bolsters the case for the ECB to increase rates tomorrow by 25 bps. 

For April
Provided by: EuroStat
Official Release: PDF

PPI y/y: 6.1%, forecast 6.1%, pr. 5.8% (rev from 5.7%)

Producer prices in the Euro-zone kept up their hot pace, accelerating to an annual rate of 6.1% in April, the fastest in more than seven years. On the month, prices were up 0.8%. Companies are being pressured by higher food and energy costs, and those prices are being passed on to consumers. Energy prices for producers were up 14.3% on the year (compared to 12.7% in March), while food prices increased 9.8% annually (compared to 10%). Consumer prices hit 3.6% in the flash estimate for May. The data implies that the ECB will continue to remain vigilant in regards to the medium term outlook for inflation and will continue their policy of holding interest rates steady at 4%.

For March
Provided by: EuroStat
Official Release: PDF

PPI y/y: 5.7%, forecast 5.6%, pr. 5.4% (rev up from 5.3% - Feb), 4.9% (Jan)

Producer prices increased 0.7% for the month of March, matching the upwardly revised figure for February. The annual pace picked up to 5.7%. This data suggests that the European Central Bank's approach of continuing to focusing on inflation is sensible. Producer prices are being pushed up by the increases in the energy sector, a theme seen all year. Oil prices are again hitting all time highs, with oil prices reaching $120 a barrel today. This price pressure is not going away anytime soon, and the economy will continue having to absorb higher costs at all stages of the production process.

From the Release:

Monthly changes
In March 2008, compared with the previous month, prices in total industry excluding the energy sector rose by 0.3% in both the euro area and the EU27. Prices in the energy sector increased by 1.8% and 1.5% respectively. Intermediate goods gained 0.4% in the euro area and 0.5% in the EU27. In both zones, non-durable consumer goods rose by 0.3%, durable consumer goods by 0.2% and capital goods by 0.1%.

Annual changes
In March 2008, compared with March 2007, prices in total industry excluding the energy sector increased by 3.7% in the euro area and by 3.9% in the EU27. Prices in the energy sector rose by 12.7% and 15.2% respectively. Non-durable consumer goods gained 5.0% in the euro area and 5.1% in the EU27. Intermediate goods increased by 4.2% and 4.6% respectively. Durable consumer goods gained 2.5% in the euro area and 2.4% in the EU27. Capital goods rose by 1.5% and 1.6% respectively.

For February
Provided by: EuroStat
Official Release: PDF

PPI y/y: 5.3%, forecast 5.2%, pr. 4.9%

Inflation cooled in February for euro-zone producers compared to January. The industrial producer price index rose by 0.6% on the month compared to January's 0.8%, and the index was up 5.3% on the year.

From the Release:

"Monthly Changes:

In February 2008, compared with the previous month, prices in total industry excluding the energy sector gained 0.5% in both the euro area and the EU27. Prices in the energy sector increased by 1.1% and 0.7% respectively. Intermediate goods rose by 0.8% in the euro area and by 0.7% in the EU27. In both zones, capital goods, durable consumer goods and non-durable consumer goods all gained 0.3%.

Annual Changes: 

In February 2008, compared with February 2007, prices in total industry excluding the energy sector increased by 3.6% in the euro area and by 3.8% in the EU27. Prices in the energy sector rose by 11.7% and 13.5% respectively. Non-durable consumer goods gained 4.7% in the euro area and 4.8% in the EU27. Intermediate goods increased by 4.1% and 4.5% respectively. In both zones, durable consumer goods gained 2.2%. Capital goods rose by 1.5% in the euro area and by 1.6% in the EU27." 

For January
Official Release from EuroStat

PPI y/y: 4.9% forecast 4.9%, pr. 4.3%

Producers are chargin significantly more at the factory gates, as the monthly inflation for them marked the highest increase in 17 months. The inflation report prescribed a higher chance that the ECB might decide to raise rates. However they will need to address the slowing economy as well. After trading in a narrow range overnight, the EUR/USD gained about 50 pips following the release.

For December
Official Release from EuroStat

PPI y/y: 4.3%, pr. 4.1%

Inflation to producers cooled for the month of December, as prices increased 0.1% compared to 0.9% in November. Prices in the energy sector were up 0.1%, while non-durable consuemr goods rose by 0.4%.

"In December 2007, compared with December 2006, prices in total industry excluding the energy sector increased by 3.1% in the euro area. Prices in the energy sector rose by 8.3%. Non-durable consumer goods gained 4.2% in the euro area. Intermediate goods increased by 3.4%. Durable consumer goods gained 1.9%. Capital goods rose by 1.5% in the euro area."