Impact of weaker euro visible but only on import prices

The pass-through of a weaker euro (which depreciated 10% between July 2014 and July 2015) so far can only be traced to the early stages of the price chain, i.e. import prices growth has gone from -1% to 1.8% yoy during the same period. 

The impact of a weaker euro has not yet shown any pass-through to domestic producer prices for accelerated growth in HICP non-energy industrial goods prices. 

"Despite an increase in import prices with the weaker euro, producer prices (excluding construction and energy) have shown no sign of quickening, suggesting that companies have either reduced profit margins by not raising output prices or that windfall gains from lower energy prices may have helped them keep producer prices low", says Societe Generale.