German producer prices rose for the second month in a row in August as companies raised prices in response to higher energy costs. Producer prices rose 0.1pc in August from July, and were up 2.1pc year-on-year, the Federal Statistics Office said. This is the highest year-on-year rise in two years. Energy prices advanced 8.9pc from a year earlier during August, the statistics office said. They were the strongest driver of the year-on-year rise, as excluding energy prices, producer prices rose just 0.2pc.
Consumer price inflation in the eurozone rose to 2.1pc last month from 1.9pc in July after energy prices rose 1.0pc in August, figures earlier this week revealed. The European Central Bank is aiming to keep inflation below 2.0pc, but it believes the rise above 2.0pc is temporary and inflation will decline in 2004. //www.fxcentre.com