Eurozone CPI came in at 0.9% yoy in January, up from December’s -0.3% yoy, well above expectation of 0.4% yoy. Core PPI surged to 1.4% yoy, up from 0.2% yoy, well above expectation of 0.7% yoy.
Looking at the main components of Eurozone inflation, food, alcohol & tobacco is expected to have the highest annual rate in January (1.5%, compared with 1.3% in December), followed by services (1.4%, compared with 0.7% in December), non-energy industrial goods (1.4%, compared with -0.5% in December) and energy (-4.1%, compared with -6.9% in December).
PPI came in at 0.8% mom, -1.1% yoy in December, versus expectation of 0.7% mom, -1.3% yoy. Industrial producer prices in the Eurozone in December 2020, compared with November 2020, increased by 2.2% in the energy sector, by 0.4% for intermediate goods and by 0.1% for capital goods and for durable consumer goods, while prices remained stable for non-durable consumer goods. Prices in total industry excluding energy increased by 0.3%.
