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German PPI Softer than Forecasts, Capital Goods See 40-Year High

MNI (London)

FEB PPI +1.4% M/M, +25.9% Y/Y, JAN +25.0% Y/Y

  • German PPI rose again for the 15th consecutive month in February, up 25.9% y/y in the January print.
  • This is up 0.9pp from January, albeit a slightly softer acceleration than the consensus expected (+26.2% y/y).
  • On the month, factory-gate inflation also rose less than projected, by 1.4% m/m (expected: +1.7% m/m). This is a slowdown from +2.2% m/m recorded in January.
  • Energy prices remain the key driving factor, up +68.0% y/y and +2.2% m/m in February, with natural gas up +125.4% y/y, electricity up +66.5% y/y and mineral oils up +34.5% y/y.
  • Intermediate goods saw a +21.0% y/y increase in February (+1.4% m/m), whilst capital goods saw an over 40-year high of +5.5% y/y, due to soaring machine and vehicle prices.
  • This data does not yet incorporate the effects of the Russian invasion of Ukraine as the survey period ended mid-February.

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