Germany's PPI falls at fastest pace since 1949

Inflation looks set to be coming down in Germany after a key indicator — the country's Producer Price Index — tumbled at the fastest rate since 1949.

The index, compiled by the federal statistics office Statistisches Bundesamt, or Destatis, measures average changes in prices received by domestic producers for their output, and is widely seen as a key indicator of future inflation rates.

The latest index, published on Wednesday, showed that year-on-year PPI fell by 12.6 percent last month, the biggest drop since data collection began 74 years ago.