UBS On-Air: Paul Donovan Daily Audio 'The effects of changing rates up and down'

German producer price inflation is expected to continue the long established disinflation trends (although note that the consensus forecast range is wide, and based off a small sample). This is confirmation that current inflation is not demand led or supply led as both would tend to show up in producer prices. Profit-led inflation generally takes place after the producer sector (with the exception of some strongly branded sectors, e.g. food or clothing).