German PPI registered the sharpest annual drop in almost six years in November, pulled lower by the decline in energy prices. The producer price index fell -2.50% year over year in November, which was substantially worse than the -2.30% contraction recorded in the previous month. Producer prices have been falling steadily since August 2013. The data indicates that there is hardly any upward pressure on consumer prices from the production side. Energy prices once again had the largest imapct on producer prices according to the Federal Statistical Office. Energy prices alone plunged -7.10% in November from a year ago, largely due to cheaper prices of petroleum products that slumped by -14.70%. On a monthly basis, producer prices dropped -0.20% in November, continuing the previous month's further decline of -0.40%. The German DAX 30 remains under pressure as concerns about the outlook linger alongside worrisome fundamentals.
More Stimulus for China
Daily Analysis - 22/12/2015