German producer prices pulled back from a 27 year high, falling 0.6% in August, which was slightly higher than the 0.5% decline expected by economists. Meanwhile, the yearly figure slipped to 8.1% from the record high reading of 8.9%, which suggests that upward prices pressures have peaked, and should moderate over the following months. Falling oil prices has helped to curb upside inflation risks for Europe’s largest economy, but after excluding energy, factory prices were still up 3.5% from last year, which remains well above the ECB’s 2% target. Slowing prices pressures suggests that the ECB may soften their hawkish rhetoric going forward, but may continue to hold a neutral policy stance for the rest of the year as the central bank abides by their principal mandate to ensure price stability for the Euro-Zone.