German producer prices posted their strongest annual gain in over five years in April, as higher metals prices drove up the costs for intermediate goods, Germany's statistics office, Destatis, said Friday.
Producer prices jumped 3.4% from April last year, which marks the strongest increase since December 2011. Economists polled by The Wall Street Journal had forecast a 3.2% rise.
Prices for intermediate goods, which account for about 31% of the overall producer price index, rose 4.3%; Energy prices increased 4.6% from April 2016.
Stripping out energy price, which tend to be volatile, Germany's PPI rose 2.8% on the year--its highest increase since October 2011.
Sharp price hikes at Germany's factory gates could further propel consumer-price inflation in Europe's largest economy, a measure which is closely-followed by the European Central Bank.
Germany's annual inflation rate, measured by harmonized European Union standards, rose to 2.0% in April from 1.5% in March, according to Destatis. The outcome was slightly above the ECB's target, because the central bank aims to anchor inflation in the eurozone at just below 2%.
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(END) Dow Jones Newswires
May 19, 2017 02:46 ET (06:46 GMT)