January 20, 2023 07:45 GMT
Core PPI Down Largely on Energy Base Effects
GERMAN DATA
MNI (London)
GERMANY DEC PPI -0.4% M/M (FCST -1.2%); NOV -3.9% M/M
GERMANY DEC PPI +21.6% Y/Y (FCST +20.7%); NOV +28.2% Y/Y
- German producer prices proved to be more sticky than anticipated in December, falling by a more modest -0.4% m/m after the -3.9% m/m plunge in November.
- PPI eased by a solid 6.6pp to +21.6% y/y falling for a third month from the Aug/Sep record peak of +45.8% y/y.
- Energy was again the key downward driver largely due to base effects filtering in. Yet PPI energy prices fell by a weaker -1.0% m/m in December after the -9.6% m/m November plunge.
- Ex-energy, factory-gate inflation was 0.7pp softer at +12.0% y/y, but unchanged on the month, implying that core PPI prices remained sticky into year-end.
- Food prices, as across Europe, continue to be an upward driver on prices, adding to headline CPI pressures despite easing energy costs.
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