German producer prices up 0.7% in December

20th January 2011, Comments 0 comments

German producer prices gained 0.7 percent in December from the previous month and were 5.3 percent higher than in December 2009, figures released on Thursday by the national statistics office showed.

Analysts polled by Dow Jones Newswires had forecast more modest gains of 0.5 percent and 5.1 percent respectively for Germany, which has the biggest European economy.

The monthly rise was the strongest since April 2009.

The cost of energy was a key factor in the increases, and when that was stripped out of the calculation the rises amounted to 0.5 percent and 3.6 percent, the Destatis office said.

Producer prices typically feed later into consumer prices, and overall German inflation stood at an annualised 1.7 percent in December, Destatis said last week.

© 2011 AFP

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