Factory-gate prices in Germany fell more than expected in July as energy prices continued to depress the index, suggesting further downside risks to the inflation outlook, data from the country's statistics office showed Wednesday.
Energy prices were again the main driver in the index, Destatis said. These fell by 0. 6 per cent on the month and 3. 2 per cent on the year.
The producer price index decreased by 0. 1 per cent on the month and 0. 8 per cent on the year in July, Destatis reported.
The most recent inflation data show consumer price inflation in the currency bloc at 0. 4 per cent in annual terms, well below the ECB's medium-term target of just below 2 per cent.
This compared with forecast expectations of a flat reading on the month and a 0. 7 per cent decline on the year, according to a survey of analysts by Dow Jones Newswires last week.
The price index excluding energy rose by 0. 1 per cent in both monthly and annual terms.
Read more here: Business Spectator