- Ralph Solveen, head of economic research at Commerzbank AG
German producer price inflation weakened to a four-month low in November, meeting analysts' expectation, the statistical office Destatis said Thursday. The gauge, which measures the average changes in prices in the country's primary markets, slowed to 1.4% in November from a year earlier, down from 1.5% in October. On a monthly basis, factory gate inflation turned lower 0.1%, after staying flat in the previous month. At the same time, prices of exported goods jumped by 1.5% compared to the previous year's figures. Earlier this month, the Bundesbank lowered its growth forecast, saying German economy will contract in the fourth quarter of 2012 and stagnate in the first three months of next year.
"Germany faces a very favorable environment, largely on the back of expansionary monetary policy," said Ralph Solveen, head of economic research at Commerzbank AG in Frankfurt. "Should the sovereign debt crisis continue to ease in the next few months as we expect, this implies a significant revival of the economy in the course of 2013."
"Although the economy will continue to cool into 2013, as things currently stand Germany will not have to face a recession," ZEW President Wolfgang Franz said in a statement.
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