DAX Retreats On Inflation Concerns
(RTTNews) - German stocks fell on Friday as an energy-supply crunch continued to batter the region, raising worries about a possible recession.
Inflation worries remained in focus after data showed Germany's producer price inflation accelerated unexpectedly to a new record high in July, primarily driven by higher energy costs.
Producer prices grew 37.2 percent year-over-year in July, well above the 32.7 percent surge in June, Destatits reported.
Economists had forecast inflation to ease slightly to 32.0 percent. This was the highest annual increase since the survey began in 1949.
The upward trend in July was largely caused by a 105.0 percent jump in energy prices amid soaring natural gas and electricity costs.
On a monthly basis, producer prices increased at a faster rate of 5.3 percent in July, after a 0.6 percent gain in the previous month. Prices were expected to increase at a steady pace of 0.6 percent.
The benchmark DAX dropped 104 points, or 0.8 percent, to 13,593 after rising half a percent the previous day.
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