Tomorrow at 10.00 UK Time, the European statistics office Eurostat will release the Producer Price Index (PPI) figures for April. Christophe Barraud, recognized as one of the “Top Forecaster” by Bloomberg, suggests that the year-on-year (YoY) PPI growth could slow down more than the expected consensus of 1.5%.
This anticipated slowdown follows a consistent normalization from the peak of 43.4% in August to 5.9% in March due to the retracement of energy prices. Bloomberg’s economists predict a YoY deceleration of 1.5% and a monthly price decrease of 3.2%.
Furthermore, it is expected that Eurozone producer prices have been falling on a month-on-month (MoM) basis for the sixth consecutive month. This trend aligns with similar observations in countries such as Spain, Italy, Belgium, and the Netherlands.
The forthcoming report holds significant importance as producer prices serve as an early indicator of inflationary trends, as changes in these prices are typically passed on to final consumers.