German Wholesale Prices Decline the Most in 22 Years

Discussion in 'Economics' started by ASusilovic, Apr 15, 2009.

  1. German wholesale prices fell the most in more than 22 years in March after energy costs and prices for agricultural goods plunged.

    Prices dropped 8 percent from a year earlier after a 5.7 percent decline in February, the Federal Statistics Office in Wiesbaden said in a faxed statement today. That’s the biggest annual decline since January 1987. From a month earlier, prices slipped 0.9 percent.

    German inflation has slowed to the lowest rate in almost 10 years after oil prices fell and the global financial crisis pushed the economy into its worst recession since World War II. The risk of deflation has increased “somewhat” and may warrant further monetary easing, European Central Bank council member Athanasios Orphanides said in an interview published yesterday. The ECB has lowered its benchmark interest rate by 3 percentage points since early October to 1.25 percent.

  2. short dax @42
  3. Once Europe is largely deindustrialized the ECB will say "We are now confident that few drivers for inflationary expectations remain" :cool: