Inflation continues to fall in the Eurozone

The Decline in Eurozone PPI for March Will Soften CPI Further in April

Posted Tuesday, May 5, 2020 by
Skerdian Meta • 1 min read

The PPI (producer price index) report from the Eurozone was released earlier this morning. In February, we saw this inflation indicator fall into negative territory, declining by 0.6%, which was revised lower to -0.7%. As energy prices fell, producer prices also declined, since they use a lot of energy. This will translate to lower CPI (consumer price index) in April. Below is the PPI report:

Eurozone March PPI Released by Eurostat – 5 May 2020

  • March PPI -1.5% vs -1.4% m/m expected
  • February MoM PPI stood at -0.6%; revised to -0.7%
  • PPI March YoY -2.8% vs -2.7% y/y expected
  • January MoM PPI stood at -1.3%; revised to -1.4%

Amid the drop in energy prices and the fallout from the virus outbreak, producer and import prices have also declined sharply. That said, this is a lagging indicator of inflation pressures since this pertains to March data, but still the trend isn’t a healthy one.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
Related Articles
0 0 vote
Article Rating
Notify of
Inline Feedbacks
View all comments