ECB likely to raise rates in September as core cost pressures remain strong, say economists
email rounding up the latestGerman producer prices have fallen more than expected, indicating that inflationary pressures are fast dissipating in Europe’s largest economy.
Oliver Rakau, an economist at consultancy Oxford Economics, said the data “offers further support to our view that there should be significant progress on the disinflationary front in the remainder of 2023 as lower producer prices feed through, especially to consumer energy and core goods prices with a lesser impact on core services”.
But food producer prices rose 9.2 per cent, while prices of durable consumer goods, such as furniture and appliances, and capital goods, such as machinery, were also higher than a year ago.’s governing council is looking for signs of whether its unprecedented increase in interest rates to a 22-year high has done enough to bring consumer price inflation down from its highest level for a generation back to its 2 per cent target.
Goldman Sachs said in a note to clients on Monday that it expected annual core eurozone inflation — which strips out volatile energy and food prices — to remain above 5 per cent until September and to only fall to 4 per cent by the end of the year as high growth in services prices partly offsets falling goods prices.
Danmark Seneste Nyt, Danmark Overskrifter
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