Latest data released by Eurostat - 2 September 2020
- Prior +0.7%
- PPI -3.3% vs -3.3% y/y expected
- Prior -3.7%
Producer prices improved slightly in the month of July, but this is very much a lagging indicator as we already saw the kind of deflationary pressures on inflation in the euro area for the month of August yesterday here.
The downside risks posed by weaker inflation in the next few months could potentially turn into a major headwind for the euro and will be a key spot to watch.
