Market Information Thursday 11 November 2021

Consumer prices in Germany rose faster in October than in September. This was revealed on Wednesday by final figures from the German statistics office Destatis. The inflation rate in October was 4.5% on an annual basis, compared to 4.1% in September. On a monthly basis, prices rose by 0.5% in October. Energy prices rose particularly sharply, with an annual increase of 18.6% in October. Food prices rose by 4.4%.

ECB governor Frank Elderson stated in an interview with the American news channel CNBC that the European Central Bank (ECB) could approach its inflation target of 2% over the medium term. Elderson did not want to anticipate on the next policy meeting in December and the question of how much the ECB still wants to stimulate through the pandemic stimulus programme. According to Elderson, the ECB is very aware of the current high inflation rate. “We are, of course, very aware, that near-term inflation is higher than previously expected. And we understand that this is a concern for citizens, as of course, this influences their income and purchasing power,” Elderson said.

The average daily output of Dutch manufacturing industry increased by 10.9% in September compared to September last year, according to the Dutch statistics office CBS. One month earlier, the growth rate was 9.4%. Compared to 2019, the growth rate was over 4%. Almost three quarters of all industrial branches produced more in September than in the same month in 2020. The machinery industry accounted for the highest growth: over 61%. One month earlier, this branch also achieved the highest growth. Meanwhile, production fell again in the transport equipment industry. In particular, the continuing chip shortage has brought production to a standstill in a number of factories.

The 6M Euribor increased with 1 basis point to -0.53% compared to previous business day. The 10Y Swap increased with 8 basis points to 0.17% compared to previous business day.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented.