According to OECD, the immigration flow to Germany reached 400,000 in 2012, making Germany the second most popular destination for immigrants, following the US. Germany was the eighth popular in 2009.  Urged by the euro zone crisis, the 300,000 immigrants were from other EU countries, since many jobless people sought a job in Germany, the economy of which had been recovering the most successfully in the euro zone.

The unemployment rate Italy remains 12%, and that of Spain remains 25%. The flow of the jobless people is supposed to oppress the German labour market, lowering the PPI.

As has often been pointed out, the fatal flaw of the euro is that any of the countries isn’t allowed to adopt the monetary policy that suits the economic situation of the country. Since Germany hates inflation, the ECB can’t do what they must do. In the meeting next month, some financial easing is expected, although a mere interest rate cut could hardly stop the structural disinflation.