Producer prices in Germany fell more than expected last month, further fuelling fear of deflation in the eurozone's largest economy. The producer price index declined 0.3pc in May from April and was up 1.3pc from a year earlier, the Federal Statistics Office said.
The decline was the largest in 10 months and reflects the pressure on companies to cut prices amid slower economic growth and weaker demand. Analysts had expected a 0.2pc decline in May. The statistics office said that excluding mineral oil products, the producer price index would have been 1.6pc higher year-on-year. Fuel prices fell 4.2pc in May from April, and the cost of light heating oil dropped almost 8pc. //www.fxcentre.com/