German PPI surge 45% YoY

German PPI surge 45% YoY

German August Producer Prices Index (PPI) surged 45.8% (vs. 37.1% expected) from a year ago, driven mainly by soaring energy prices, raising the chances that headline inflation will surge even higher.

Energy prices in August were on average more than twice as high as in the same period last year, 139% and 20.4% higher than the previous month, the Federal Statistical Office said.

Excluding energy, the PPI rose 14% compared to the same month last year. 

"While declining momentum in intermediate goods prices gives reason to believe that consumer price inflation will peak in the coming months, the recent surge in energy prices shows that there is considerable potential for uncertainty here," Commerzbank economist Ralph Solveen said.

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