Bankinter | Industrial production prices surprise positively after rising 2.6% in August (as opposed to the 3.3% expected versus 3.3% previous), with the underlying rate (excluding energy and food) at 2.8% (as opposed to the 3.5% expected versus 3.7% previous).
Bankinter analysis team’s view: The impact of tariffs on prices and business margins seems limited, at least for now, although the most important data will be published today at 2:30 p.m. (2.9% expected in the August CPI as opposed to 2.7% previously). The bond market is discounting two cuts of -25 bp each in 2025 (versus 4.25%/4.50% currently) because the labour market is losing momentum faster than expected.
