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German Wholesale Prices Fall Further, Raising Risks for Deflation
Tuesday, 13 January 2009 06:11:24 GMT  |  Geng Chen, DailyFX Research
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The German wholesale price index fell 3.0% following a 3.3% decline in November, which lowered the annual rate to -3.3% from -0.8%. The data continues to support the European Central Bank’s dovish outlook for inflation, which would allow policymakers to ease policy further as price pressures alleviate. As the ECB continues to carry out its primary mandate to ensure price stability, increasing risks for deflation could force the central bank to lower borrowing costs even further this week in order to meet the 2% target for inflation.

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