Euro area PPI increased 0.4% MoM in December, in line with expectations, and was flat on an annual basis, up from -0.1% YoY in November.

• Ex-energy, PPI inflation was 0.0% MoM and 0.9% YoY as energy jumped 1.4% MoM in December but is still negative on an annual basis at -1.7% YoY.
• Durable consumer goods up 0.2% MoM was the non-energy segment with the largest growth.
• Intermediate, capital goods, and non-durable consumer goods were all up 0.1% MoM.

In general, producer cost pressures are no longer on the decline (compared to a year ago). Instead, with energy rebounding, firms are beginning to see some upward pressure on operating costs even if it is small.