Euro area’s producer price inflation accelerates in June

Euro area’s producer price inflation accelerated in June, after an upward surprise to the latest consumer price inflation data. After a rise in the headline rate in the earlier month, when it rose to 3 percent year-on-year, the producer price inflation accelerated to 3.6 percent year-on-year, the highest level in over one year.

In particular, high inflation of 9.5 percent year-on-year in the energy sector, up from 7.7 percent year previously, to a large degree accounted for the rise. In the meantime, inflation in other categories stayed much lower, albeit intermediate goods producers did register a marker rise from 2.4 percent to 3 percent.

Supporting the softness in consumer prices, durable consumer goods price inflation stayed the same at 1.1 percent year-on-year, while the non-durables ones saw a fall from 0.3 percent year-on-year to 0.1 percent year-on-year, a level last seen in September 2016, stated Daiwa Capital Market Research in a report.

At 20:00 GMT the FxWirePro's Hourly Strength Index of Euro was slightly bearish at -51.3141, while the FxWirePro's Hourly Strength Index of US Dollar was slightly bullish at 60.3914. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex