Germany PP
  • Prior +5.3%
  • Producer prices +45.8% vs +37.1% y/y expected
  • Prior +37.2%

Yowza. That's a massive beat on estimates (and highest monthly jump on record) as German producer prices surged in August after the strong increase in July. Once again, the increase in energy prices (+20.4%) was the main contributor but prices also rose significantly for intermediate goods (+17.5%) and capital goods (+7.8%) as well as for durable and non-durable consumer goods (10.9% and 16.9%, respectively). This is not a good sign that inflation pressures are going to ease any time soon in Europe's largest economy.