"German Producer-Price Inflation Reaches 27-Year High (Update2)
By Gabi Thesing
Aug. 19 (Bloomberg) -- German producer-price inflation accelerated to 8.9 percent, the fastest pace since October 1981, reinforcing speculation the European Central Bank will keep interest rates at a seven-year high even as the economy cools.
Economists expected July prices for goods from newsprint to plastics to increase 7.5 percent gain from a year earlier, the median of 30 estimates in a Bloomberg News survey showed..."
Full article at http://www.bloomberg.com/apps/news?pid=20601087&sid=aLgWJY8Ueu1U&refer=home
Comment:
This can hardly be gold negative. Now shouldn't this inflation be supportive of the euro? After all we're told increasing US inflation is good for the US dollar because the Fed will have to increase interest rates.
(But we're not told that increasing US interest rates will destroy their already collpsing housing market as just one of the by productcs of interest rate hikes. I guess with all the spin around we're not meant to think of that and just believe what we are told is THE TRUTH.)
