Tuesday December 2, 10:27 AM
INSTANT VIEW 2-Euro zone Oct producer prices drop 0.8 pct m/m
Dec 2 (Reuters) - Euro zone producer prices fell more than
expected month-on-month in October, data showed on Tuesday,
underlining disinflationary trends in the recession-hit economy
and the scope for a deep ECB rate cut.
****************************************************************
Table: Story
KEY DATA
(percentage change)
OCT SEP AUG
Total industry m/m -0.8 -0.3 -0.5
(ex-construction) y/y 6.3 7.9 8.6
MARKET REACTION
* For any foreign market reaction click on. For more
details of currency market moves see.
* For any bond market reaction, click on
ECONOMIST COMMENTS
HOLGER SCHMIEDING, BANK OF AMERICA (NYSE: IKJ - news) :
'This is very much better than expected, mainly due to the
fall in oil prices. It shows there is no pipeline pressure left
in the euro zone and this is likely to translate into further
drops in headline inflation shortly.
'We are also seeing inflation pressures easing in industry
excluding construction and energy, where we see a fall in the
annual rate from 4.1 to 3.2 percent. So it is of course energy,
but not only energy. It is a fairly broad-based easing of
inflationary pressures beyond energy.
'The message for the ECB is clearly: don't worry about
inflation, cut now, and a lot. I would say 75 basis points, it's
a minimum. The data clearly supports the case for a big cut.'
LINKS
For further details, Reuters 3000 Xtra users can click on:
http://europa.eu.int/comm/eurostat/
For a one-page snapshot of real-time G7, euro zone and Swiss
economic data releases, click on
Keywords: EUROZONE ECONOMY/PPI
|
|
|
Send Article by Email
Send Article by IM
Blog This with Y! 360
Printable View
