Producer Price Index rises 1.4% in November

German annual Producer Price Index rose in line with economists expectations in the month of November, the Federal Statistical Office reported on Thursday. The Destatis report showed increase of the PPI by 1.4% in November, following a 1.5% advance in the previous month. On monthly basis, the PPI dropped 0.1% reaching the same figure as the month before, while projections showed a 0.2% decline.

"The German economy looks set to contract in the fourth quarter of 2012, before staging a recovery that is expected to be modest initially in 2013," CESifo said in a statement. "If the euro crisis does not escalate and remains in line with the baseline scenario, domestic upward forces and rising demand for German export goods from outside the EU should boost the economy."