Producer prices in Germany rose at their fastest pace in more than two decades in January, boosted by rising oil prices. Wholesale price inflation surged 1.3pc in January from December, and was up 1.6pc year-on-year, according to the Federal Statistics Office. The month-on-month rise was the strongest since January 1982 and was due mainly to higher energy prices, following spikes in crude oil amid rising tension between the US and Iraq. Economists had expected the producer price index to rise by just 0.6pc on the month.
The cost of energy products rose 5.4pc, with fuel prices gaining 5.8pc. Excluding oil products, producer prices in Germany would have gained 0.2pc in January. Producer prices in the US are also under upward pressure from oil prices. Recent government figures revealed that prices rose 1.6pc in January from December, the fastest pace in 13 years, as energy prices rose 4.8pc. //www.fxcentre.com