By Ben Sills
Nov. 25 (Bloomberg) -- Spanish producer prices fell the most in more than 20 years in October as the European economy slipped into a recession and the cost of oil declined.
The price of goods leaving Spain’s factories, mines and refineries fell 1.2 percent from the previous month after a 0.7 percent decline in September, the National Statistics Institute in Madrid said in an e-mailed statement today. That compared with a median forecast for a 0.7 percent decline in a Bloomberg News survey of eight economists. Prices rose 5.9 percent on the year.
The European Central Bank is likely to lower borrowing costs for the third time since October next week after the economy of the 15 euro nations shrank for the second straight quarter in the three months through September. The slump in the price of oil, which has fallen by two thirds since touching a record in July, is reducing inflation pressures, giving policy makers more scope for action.
Investors are betting the bank will cut its benchmark rate by at least 75 basis points at its next policy meeting on Dec. 4, Eonia forward contracts show.
To contact the reporter on this story: Ben Sills in Madrid at bsills@bloomberg.net
Posts
No comments:
Post a Comment