The producer price index increased by 0.5% in February. Year-on-year inflation reached 3.2% after 2.8% in January. Inflation in prices paid by industry and agriculture represents a warning sign to the rest of the economy. The higher inflation figures are not only the result of external factors, e.g. prices paid for oil or metals, but prices in many other sectors are on the rise as well. The timing of the next interest rate hike(s) is still not clear. Therefore, today’s data on GDP for the 4Q06 will be looked for even more anxiously.