- Andreas Rees, Unicredit economist
The bunch of data from the Euroland showed that consumer prices in Germany saw their growth rate unchanged in August, while industrial production in Italy strengthened in July. In Germany, the CPI measure remained flat on a monthly basis in August, following the 0.2% growth in July. Concerning the most important product categories, energy prices fell 7.6% on an annual basis, while food and rent edged up 0.8% and 1.1% respectively. Another report by the Destatis revealed that prices in wholesale trade in Germany decreased by 0.8% in August from the preceding month and versus an anticipated growth of 0.2%.
Meanwhile, industrial output in Italy expanded on a monthly basis in July after the previous drop into negative territory. According to the Istat, the production gauge advanced 1.1%, compared with the decline by 1% in June, beating the estimates of 0.9% increase. The gain was led by a 7.1% monthly increase in energy output, while consumer goods added 1.0% and intermediate goods rose 0.6% over the period. After the several upbeat releases of economic data from Italy, the government of Italian premier Matteo Renzi announced that it expects economic growth of 0.7% this year after three consecutive years of contraction.
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