Factory-gate prices in Germany fell more than expected in July as energy prices continued to depress the index, suggesting further downside risks to the inflation outlook, data from the country's statistics office showed Wednesday. The producer price index decreased by 0.1% on the month and 0.8% on the year in July, Destatis reported. This compared with forecast expectations of a flat reading on the month and a 0.7% decline on the year, according to a survey of analysts by Dow Jones Newswires last week. Energy prices were again the main driver in the index, Destatis said. These fell by 0.6% on the month and 3.2% on the year. The price index excluding energy rose by 0.1% in both monthly and annual terms. Prices at the factory gates have an effect on, but don't translate directly into, prices paid by consumers. Price pressures in the euro zone remain at alarmingly low levels, leaving some experts pushing for more intervention from the European Central Bank. The most recent inflation data show consumer price inflation in the currency bloc at 0.4% in annual terms, well below the ECB's medium-term target of just below 2%. Analysts say the ECB seems inclined to wait on the effect of measures it unveiled in June, before embarking on any policy changes.Source: marketwatch.com