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Economy in Brief

German PPI Inflation Shows Stubbornness
by Robert Brusca February 20, 2008

The German inflation picture remains a bit hotter than the ECB would have liked. With headline PPI inflation up by 0.7% the core was up by 0.4%. Over the past 12 months, headline MFG inflation is at 3.2% the same as it was a year ago. Excluding energy MFG inflation fell to 2.4% Yr/Yr from 3% a year ago.

Sequential growth rates show that ex energy inflation is very sticky above 2%. Meanwhile, headline inflation has continued to build pressures in terms of these sequential rates.

Basic goods prices rose by 0.7% in January and by 2.6% Yr/Yr. Capital goods prices rose by 0.1% and are higher Yr/Yr by 0.7%. Consumer goods prices rose by 0.5% in January but were up a strong 3.9% Yr/Yr. Energy prices were by 2.1% in January and by 5.9% Yr/Yr.

Germany PPI
  %m/m %-SAAR
  Jan-08 Dec-07 Nov-07 3-mo 6-mo 12-mo 12-mo Year Ago
MFG 0.7% 0.0% 0.9% 6.9% 4.6% 3.2% 3.2%
Ex Energy 0.4% 0.1% 0.1% 2.2% 2.2% 2.4% 3.0%
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