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BUSINESS NEWS JAN 21, 2008
Due to a technical problem on Wednesday Jan 16, we are upgrading the news management system by a Canadian software company, which will be completed in coming days.

It has taken longer than anticipated. That is one of the drawbacks of outsourcing. C'est la vie - even Google News updating falls behind at times!

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German Producer Prices declined in December 2007

The German Federal Statistical Office, De Statis, reported today that on an annual average in 2007, the index of producer prices for industrial products (domestic sales) for Germany was up 2.0% from the previous year. In 2006, the annual rate of change was 5.5%. In December 2007, the index of producer prices rose by 2.5% from the corresponding month of the preceding year.

However, German producer prices unexpectedly fell in December as commodity prices retreated.

De Statis said that prices for goods decreased 0.1% last month compared with November, when they rose 0.8%.

While oil prices had fallen in early December, they rebounded to a record of $100.09 per barrel on January 3rd, and the cost of food has continued to surge.

German consumer inflation was at 3.1% in December, down 0.2 percentage points from a 12-year high the previous month. The ECB's annual inflation rate was also 3.1% compared with its target of "below but close to"  2%.

Producer prices for mineral-oil products fell 2.1% in the December and lead, zinc and tin was down 17%.

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