Eurozone: CPI unchanged while money supply growth disappointed - BBH

Research Team at BBH, suggests that the Eurozone economic data today included money supply (with its lending report) and the final May CPI. 

Key Quotes

“Money supply growth M3 disappointed with 4.6% three-month year-over-year pace.  It is the slowest pace since February 2015.  The lending data was also not particularly inspiring.  Lending to non-financial firms edged higher to 1.2% from 1.1%, while lending to households slowed to 1.5% from 1.6%.  The data is unlikely to impact the ECB assessment later this week or the staffs updated forecasts. 

The final CPI reading was unchanged from the preliminary estimate of a minus 0.1% headline rate after minus 0.2% in April.  The core rate ticked up as expected from 0.7% in the preliminary report to 0.8% in the final. 

Separately, Germany reported an unexpected decline in the unemployment rate to 6.1% from 6.2% as the unemployment queues fell by 11k rather than 5k that economists estimated.  Like we saw in Japan, strong labor market readings have not spilled over to boost consumption.  Germany reported that April retail sales fell 0.9%.  The median forecast found in a Bloomberg survey was for a 0.9% rise, after a 1.1% decline in March.”