For July
Provided by: Statistics Office
Official Release: Press Release

PPI y/y: 8.9%, forecast 7.5%, pr. 6.7% (Jun), 6.0% (May), 5.2% (Apr)

German producer prices accelerated at a fast pace in July, far above expectations. Prices on the month were up 2.0%, compared to July's 0.9%. And on the year, prices rose 8.9% setting a new 27-year high. The data will add pressure for the ECB to hold rates at 4.25%, a seven-year high, even as the economy hits a period of serious slowdown in the 3rd quarter. With prices increasing at the wholesale level, companies are passing the costs on to consumers, which are feeling the sharpest consumer inflation in 12 years. 

From the Release: "As reported by the Federal Statistical Office (Destatis), the index of producer prices for industrial products (domestic sales) for Germany was up 8.9% in July 2008 from the corresponding month of the preceding year. This was the highest year-on-year rate of price increase since October 1981 (+9.1%). In June 2008, the annual rate of change was +6.7%. Compared with the preceding month, the index rose by 2.0% in July 2008 (+0.9% in June 2008)."

For June
Provided by: Statistics Office
Official Release: Press Release 

PPI y/y: 6.7%, forecast 6.5%, pr. 6.0%, 5.2%

Germany continues to face rising inflation at the producer level. Prices were up 0.9% on the month and reached a 26 year high annual pace of 6.7%. A higher oil bill is causing producer of raw materials to pass along more of the costs to other firms and consumers. German energy prices are up 17.9% from a year earlier and mineral oil products were 28% higher. Inflation is expected to keep climbing even as the economy cools, putting pressure on the ECB. However, as they have been determined to show, the ECB is more concerned over price pressures, increasing the interest rate last month. They may be expected to so again sometime this year, possibly as early as September.  

From the Release: "As reported by the Federal Statistical Office (Destatis), the index of producer prices for industrial products (domestic sales) for Germany was up 6.7% in June 2008 from the corresponding month of the preceding year. This was the highest year-on-year rate of price increase since March 1982 (+7.2%). In May 2008, the annual rate of change was +6.0%. Compared with the preceding month, the index rose by 0.9% in June 2008."

German Producer Price Index y/y: 6.0%, forecast 5.8%, pr. 5.2%

Inflation sped up in May, and faster than expected. From the release:

The index of producer prices for industrial products (domestic sales) for Germany was up 6.0% in May 2008 from the corresponding month of the preceding year. The same year-on-year rate of price increase was last reached in July 2006. In April 2008, the annual rate of change was +5.2%. Compared with the preceding month, the index rose by 1.0% in May 2008.

For April
Provided by: The Federal Statistics Office
Official Release: Press Release

PPI y/y: 5.2%, forecast 4.7%, pr. 4.2 (Mar), 3.8% (Feb)

Producer prices in Germany accelerated at the fastest annual pace in nearly 2 years. In annual terms producer inflation was up 5.2%, and on the month prices were up 1.1%. The economy continues to digest high energy prices, and higher inflation will curb consumer's appetites. Energy prices were 12.6% higher compared to last year, with oil up 17.8%. If energy was taken out of the equation prices would have increased 2.7%. The ECB has made it clear that they are chiefly concerned with bringing inflation under control, and data like this supports the Governing Council either holding rates at 4%, or if they deem it necessary perhaps even increasing rates.

The Euro got a strong boost overnight, and reached a new high for the week above 1.5650. 

For March
Provided by: The Federal Statistics Office
Official Release: Press Release

PPI y/y: 4.2%, forecast 4.0%, pr. 3.8%

German PPI, a leading indicator for price inflation in the economy, accelerated 4.2% in March on an annual basis, as the producers absorb higher energy costs. It was the fastest pace in 15 months. From February, prices were up 0.7% higher than expected though matching February's level. The news adds more bias to the hawkish camp in the ECB.

Dollar Strength Overwhelms PPI Data: The EUR/USD hit a session high at 1.5955, but the proceeded to fall more than 200 pips starting at around 5 AM EST. The pair found support at 1.5712 and rebounded at 9 AM with Friday' session shaping up to be quite volatile.

For February
Release from The Federal Statistics Office

PPI y/y: 3.8%, forecast 3.4%, pr. 3.3% (Jan), 2.5% (Dec), 2.5% (Nov)

Producer saw prices surge in February, way faster than economists had expected. Energy prices contributed to the large increase. The 3.8% year-to-year inflation is the highest since December of 2006. At the moment, the German economy is resilient and industrial production has been strong. However domestic consumption has always been an issue, and with price pressures increasing will be curbed even more. Meanwhile, the strenghtening Euro and slowing US demand will put pressure on exports.

For January
Release from The Federal Statistics Office

PPI y/y: 3.3%, forecast 2.8%, pr. 2.5% (Dec), 2.5% (Nov)

Producer Prices surged in January. On the month, prices were up 0.8%, while the annual pace jumped to 3.3%. The higher than expected inflation complicated the picture for the ECB, which on the one hand wants to stimulate growth with lower rates, but is wary of letting inflation linger on into the medium term.  

"As reported by the Federal Statistical Office (Destatis), the index of producer prices for industrial products (domestic sales) for Germany was up 3.3% in January 2008 from the corresponding month of the preceding year. In December and November 2007, the annual rate of change was each with +2.5%, respectively. Compared with the preceding month, the index rose by 0.8% in January 2008."

For December.
Release from The Federal Statistics Office

PPI y/y: 2.5%, forecast 2.7%, pr. 2.5% (Nov)

December's slight dip in the price of crude oil reduced inflationary pressure. However, we can expect the headline number to be higher as oil prices reached record levels pass the $100/bbl mark in January.