Producer Price Index in Germany hit 3-year low

Earlier today official data came out, regarding production cycle prices in Germany, which showed deceleration during April. Major reason for this decline was the dropping oil prices, as Producer Price Index (PPI) reached three year low on annual basis. PPI decreased in value by rate of 0.2% during April, while estimates showed barely a 0.1% drop. In annual terms, PPI increase in Euro zones largest economy slowed down to 0.1% during April, matching forecasts, while the increase rate during preceding period was 0.4%.

It turned out that Germany experienced a slower rate of increase during March 2010, with the country struggling to recover from a deep recession and producer prices, plunging by 1.5% on annual basis. A Newedge Strategy expert in London stated that Germany endured a moderate inflationary pressure on producer prices, which developed in consonance with consumer price inflationary pressure.