Citing official data from Germany's federal statistical agency Destatis, Reuters reported that producer prices in Germany fell lower than expected in September. The annual PPI decreased by 1.4%, while experts had anticipated a 1% decline. Interestingly, factory inflation in Germany has been declining for 15 months straight.
The main reason for this significant drop was the slump in energy prices, which were down 6.6% compared to the same month in 2023. Importantly, the price of mineral oil products plummeted by 14.4%.
Excluding this volatile component, core producer prices in Germany actually rose by 1.2%. Furthermore, experts highlighted an increase in expenditures on capital, consumer, and intermediate goods.
Analysts pointed out that Germany’s producer price index logged a decline in September for the 15th consecutive month. This indicator is crucial for estimating further consumer inflation.
Besides, Germany's HICP inched down to 1.8% in September year-on-year following 2% in August. Producer prices adjusted to the EU slipped by 0.5% in September on a monthly basis, although experts had predicted a decrease of only 0.2%.
