German producer prices climbed for a seventh consecutive month in July in month-on-month metrics. July PPI climbed 0.5% from the month prior when prices rose 0.6%. The index itself hit its highest level in 2010 at 110.4. While we believe that this price rises are not worthy of sparking concern about inflationary pressures, however, we will start to watch the PPI very carefully to see if inflation looks like it will rear its head in coming months, which may ultimately put pressure on the ECB to address interest rates sooner than expected.
Written by Jonathan Granby, DailyFX Research Team
If you wish to contact the author with comments of questions email jgranby@fxcm.com
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