German producer prices soar almost 20% y/y on energy costs

Credit: REUTERS/POOL New

BERLIN, Dec 17 (Reuters) - German producer prices rose by 19.2% on the year in November, driven up by higher energy prices to record the biggest annual jump since 1951 for the second month in a row, official data showed on Friday.

Analysts had on average expected an annual increase of 19.9% according to a Reuters poll. On the month, producer prices rose 0.8% in November.

Energy prices were up 49.4% compared to November 2020 and rose 1.2% on the month, the Federal Statistics Office said.

Stripping out energy prices, producer prices rose 9.9% on the year.

In October, producer prices had also recorded their strongest increase since 1951, rising 18.4%.

Producer prices are regarded as a leading indicator for inflation. They are recorded at the factory gate - before products are processed further or go on sale - and can therefore provide an early indication of consumer price trends.

On Thursday, the European Central Bank took another small step in rolling back crisis-era stimulus but promised to hold down borrowing costs next year and even kept the door open to restarting emergency support.

(Writing by Paul Carrel, Editing by Miranda Murray)

((paul.carrel@thomsonreuters.com))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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