Eurozone PPI at 0.6% Reinforces Hawkish ECB Case

Eurozone producer prices rose more than expected in April. The Producer Price Index increased 0.6% month-on-month, topping the 0.4% consensus forecast. The print follows an upwardly revised March number and marks the second consecutive beat. Pipeline cost pressures remain elevated in the euro area's manufacturing sector, particularly for energy and intermediate goods.

The headline PPI is not a direct consumer inflation gauge. However (note: