The Euro Zone Producer Price Index is expected to decline -0.3% in October to bring the annualized rate to 7.0%, the lowest since April. PPI peaked in July with the global rally in commodities and has since seen steep decline. The index is seen as a leading indicator of consumer inflation: if manufacturing costs decline, firms are expected to pass on at least some of the savings by way of a cheaper final product. Economists expect headline inflation to fall below the 2% threshold for “price stability” by the second quarter of next year. This means more interest rate cuts are likely on the way, with the European Central Bank expected to trim at least 0.50% off borrowing costs later this week and offer between 125-150 basis points in additional easing over the next 12 months.