German wholesale prices down 8.3% in August
Just when you thought it was safe to assume that central bank inflation of monetary supply was guaranteed to snap the globe out of its economic decline, along comes more bad news, declaring deflation is actually winning. Central banks are not creating more liquidity; they are simply burning newly printing money is a large furnace. That's the effect at least.
FRANKFURT (NYSE:AP) -- German wholesale prices were down sharply in the year to August despite rising slightly from July, as demand remained weak amid the economic downturn, official data showed Friday.
Wholesale prices -- which determine the cost of raw materials for industry -- fell nearly 18 percent for fuels. Prices for metals fell nearly 33 percent compared to August last year. Both fuels and metals saw price increases compared to July 2009.
Food, seed and animal feed wholesale prices all dropped on the year, and were all lower or flat compared with July 2009.
The yearly drop in overall wholesale prices was not as sharp as in July, when they were down nearly 11 percent, or in June, when they were down almost 9 percent.