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


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)


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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