ECB Should be Reassured by Slowing Selling Prices in PMIs
Dow Jones
Aug 21
1124 GMT - The decline in output-price inflation as measured in the eurozone's PMIs should please policymakers at the European Central Bank, Berenberg's Felix Schmidt and Andrew Wishart say in a note. Selling-price inflation in services sector retreated back to the lowest since March, with goods-price inflation also continuing to moderate, the survey shows. "That should make a rate hike in September even less necessary, in our view," the Berenberg economists say. Underlying data shows that the easing of output price inflation was centered on Germany, the survey's authors say. Investors price in about a 95% chance of the ECB raising interest rates in September, according to LSEG data.
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