German Producer Prices Spike but Fail to Impress the EUR

It was a quiet Eurozone economic calendar, with stats limited to German producer price figures for April.

German Producer Prices Surge, Driven by Energy Prices

In April, Germany’s producer prices for industrial products increased by 2.8% versus a forecasted 1.4%. Producer prices for industrial products had jumped by 4.9% in March.

According to Destatis,

• The index for industrial products surged by 33.5% compared with April 2021, which was the highest increase on record.
• Energy prices drove prices northwards at the turn of the quarter.
  • Compared with April 2021, energy prices were up 87.3% and by 2.5% compared with March 2022.
  • The overall index excluding energy was 16.3% higher when compared with April 2021.
• Prices of intermediate goods surged by 26.0% and were 4.1% higher than in March 2022.
• Non-durable consumer goods prices increased by 13.2% compared with April 2021 and by 3.9% compared with March 2022.
• Prices of durable consumer goods increased by 8.3% year on year.
• There was also a marked increase in prices of capital goods. In April, prices were up 6.7%, the highest year-on-year increase since Oct-75.
• In March 2022, the index had increased by 30.9% year on year and by 25.9% in January compared with January 2021.

Market Impact

Ahead of today’s numbers, the EUR rose to a pre-stat and a current day high of $1.05933.

In response to today’s stats, the EUR fell to a post-stat and a current-day low of $1.05547.

At the time of writing, the EUR was down by 0.02% to $1.05799.

Next Up

There are no major stats from the US for the markets to consider later today. The lack of stats will leave the EUR in the hands of central bank chatter.

ECB member Philip Lane is due to speak later this afternoon.