German producer prices unexpectedly fell in December on the back of lower commodity costs.
The Federal Statistics Office Prices for goods decreased 0.1 per cent last month compared with November, when they rose 0.8 per cent.
While oil prices had declined in early December, they rebounded to a record of $100.09 per barrel on January 3rd, and the cost of food has continued to rise.
Several European Central Bank council members have signalled concern that workers will seek more pay to compensate for higher costs.
The price of oil has surged about 80 per cent in the past 12 months. German inflation was at 3.1 per cent in December, down 0.2 percentage points from a 12-year high the previous month. The ECB aims to keep inflation just below 2 per cent.
Producer prices for mineral-oil products fell 2.1 per cent in the month and lead, zinc and tin was 17 per cent less expensive, today's report found.
