Latest data released by Destatis - 20 September 2021
- Prior +1.9%
- PPI +12.0% vs +9.2% y/y expected
- Prior +10.4%
German producer prices continue to sizzle, beating on estimates as the trend reaffirms the continued rise in cost pressures domestically and globally. As supply bottlenecks and capacity constraints are likely to persist in Q4, expect this to continue.
In turn, this will translate to higher consumer inflation and the fear is that eventually consumers will be priced out or at least see spending appetite wane as a result.
