Retail Sales Surprise in Europe but PPI Points to Weaker Inflation
The economic data from the Eurozone has been weakening in recent months, especially manufacturing. The consumer confidence has also been deteriorating as the broader economic projections look gloomy in Europe. Although, today we see some really positive figures from the retail sales reports.
Retail sales posted a decent jump of 1.1% in June after the decline we saw in May. In Italy, retail sales posted an even bigger jump of 1.9% and coming from three negative months previously, it looks even better. Have a look at the table below:
| Economic Data | Actual | Expected | Previous |
| Eurozone Retail Sales MoM | 1.1% | 0.3% | -0.3% |
| Eurozone Retail Sales YoY | 2.6% | 1.3% | -0.6% |
| Italian Retail Sales MoM | 1.9% | 0.4% | -0.6% |
| Eurozopne PPI MoM | -0.6% | -0.4% | -0.1% |
| Eurozopne PPI YoY | 0.7% | 0.8% | 1.6% |
The jump in retail sales is a good sign for the weeks to come. But the softer PPI (producer price index) numbers are worrying because it means that CPI (consumer price index) inflation will be affected negatively in the following months.
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