Market Updates: German Producer Price Index (PPI) Disappoints
Arslan Butt • 1 min read
Fellas, Destatis reported a drop in the German PPI figures from 0.2% to -0.1%. As you know it’s a leading indicator of consumer inflation – when manufacturers charge more for goods, the higher costs are usually passed on to the consumer.
Digging further into details, the index of producer prices for industrial products rose by 2.6% in February compared with the corresponding month of the preceding year. Back In January 2019 the annual rate of change all over also had been 2.6%.
So overall, it’s negative data and it can drive bearish pressure in the single currency Euro.