Today Eurostat’s EU statistics published the Euro-zone’s industrial producer prices for November. They are down by 1.4% in comparison with November 2018. The figure was already deflationary in the three previous months! As recent economic data show the recent significant rise in oil prices is having an effect. So one can probably expect the same for producer prices? For, as the statisticians write today, the still weak oil price in November 2019 was mainly responsible for the weak producer prices. Quote:
In the Eurozone, compared with November 2018, industrial producer prices in November 2019 fell by 6.1% in the energy sector and by 1.4% for intermediate goods. Capital goods rose by 1.4%, durable consumer goods by 1.6% and non-durable consumer goods by 1.7%. Output prices in total industry, excluding the energy sector, rose by 0.3%.
But if you look at the oil price right now, it was a good 15 Dollars lower on the futures market in December 2018 than in December 2019. So we can assume that the producer prices reported for December in four weeks will show a clear plus because oil production has become much more expensive?