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German PPI beats expectations, at fresh record high

GERMAN DATA
MNI (London)

JAN PPI +2.2% M/M, +25.0% Y/Y, DEC +24.2% Y/Y

  • German factory-gate inflation climbed further in January, surging to +25.0% y/y, beating the consensus forecast by 0.6% which saw a modest increase from December's print of 24.2% y/y.
  • PPI also came in significantly stronger on the month, growing 2.2% m/m, outpacing the forecast of +1.5% m/m, although significantly slowing from December's surprise +5.5% m/m growth.
  • Energy prices remain the key driver of PPI inflation at +66.7% y/y in January 2022 compared to 2021, with natural gas surging by +119.0% y/y and electricity up +66.7% y/y.
  • Intermediate goods prices jumped +20.7% y/y, largely on the back of metal price inflation of +36.9% y/y.

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