Germany Producer Price Inflation Highest Since October 2008

Germany's producer prices increased to the highest level in twelve-and-a-half years in May, Destatis reported Friday.

Producer prices increased 7.2 percent year-on-year in May, faster than the 0.8 percent rise seen in April. Economists had forecast an annual growth of 6.4 percent.

This was the biggest growth since October 2008, when prices rose strongly before the financial crisis.

The latest inflation was mainly due to higher prices of intermediate goods and energy, by 10.7 percent and 149 percent, respectively.

Prices for durable goods increased 1.7 percent. Prices for capital goods and non-durable goods rose by 1.2 percent and 0.5 percent, respectively.

On a monthly basis, producer price inflation rose to 1.5 percent from 0.8 percent in the previous month. Economists had expected a 0.7 percent rise.

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