- New Zealand: International Trade (Feb)
- Korea: Consumer Survey Index (Mar); Philippines: Public Finance (Jan)
- Weekly: **Initial Claims Data Revisions Completed**
- Euro area: Flash Consumer Confidence Indicator (Mar)
- US: New Residential Sales (Feb)
- Belgium: Business Survey (Mar)
- Uruguay: GDP (Q4)
- more updates...
Economy in Brief
Kansas City Federal Reserve Factory Index Strengthens; Expectations Surge
The Kansas City Fed reported that its index of regional manufacturing sector business activity increased to 20 during March...
U.S. Initial Unemployment Insurance Claims Rise
Initial claims for unemployment insurance increased to 258,000 (-3.0% y/y) during the week ended March 18...
U.K. Retail Looks Less Bulletproof
For the most part, the assessments embodied in the March survey from the UK's CBI are being taken as being upbeat...
U.S. Existing Home Sales Fall to Five-Month Low; Inventory Remains Tight
Sales of existing single-family homes declined 3.7% (+5.4% y/y) to 5.480 million units (AR) during February...
U.S. FHFA House Price Index Momentum Diminishes
The FHFA U.S. house price index remained unchanged during January following a 0.4% December increase ...
Japan's Trade Trends Turn Sharply Higher
Japan has logged its largest current account surplus since April 2010...
by Robert Brusca February 2, 2017
The EMU area PPI surged by 1.1% in December, driving the three-month inflation rate to 10%, the six-month pace to 5.3% and raising the year-over-year pace to 1.6%. This is a sharp reversal from last year's 3% drop in the PPI.
Price trends are accelerating from 12-month to six-month to three-month for all three major categories as well: capital goods, consumer goods and intermediate goods.
The table contains an assortment of 10 EMU nations and several other European nations. Only one of them, Ireland has a drop in its PPI month-to-month in December. Inflation is accelerating over six-month to three-month as well as from 12-month to six-month in each of these nations except in Italy (where the inflation rate abates from six-month to three-month).
PPI inflation is its most virulent in the Netherlands, Greece, Sweden and Spain. Each of those nations has a high ranking for inflation compared to the others over three months and six months and each of them shows strong inflation acceleration from three-month to six-month and from 12-month to six-month.
Inflation is low in Italy, Germany, France, Ireland and Denmark. Those countries show moderate inflation over three-month, six-month and 12-month compared to other members and also a low tendency for inflation to accelerate. Some countries simply have shock absorbers than keep inflation at bay, but others have a more incendiary tendency.
In the face in this inflation pressure, the ECB has released an announcement that inflation is rising on the back of rising oil prices and that does not change the outlook at all. The ECB intends to 'look through' the rise in oil prices and to keep its ultra-easy policy as long as the prices of other goods and services remains slow. The German cry for action is falling on deaf ears. This is no longer simply analysis but is admitted ECB policy.