Germany experienced a consistent decrease in producer prices for the eighth consecutive month in February, dropping at a quicker rate than anticipated, according to the data released by Destatis on Wednesday.
In February, the annual decrease in producer prices sat at 4.1 percent, following January's decline of 4.4 percent. These prices have been continually falling since July 2023.
Energy prices took a significant hit, diminishing 10.1 percent compared to the previous year. Such a dramatic plunge was primarily influenced by the lowering of natural gas prices.
When setting aside energy prices, the remaining producer prices were assessed as being 0.8 percent lower than those in February 2023, while slightly boasting a 0.1 percent increase from January.
The prices for intermediate goods fell by 3.8 percent from the previous year. This decrease is largely attributed to the diminished prices of metals and chemical raw material. Conversely, the prices for consumer goods saw a slight rise of 0.2 percent, marking the lowest price increase since April 2021.
Comparing to January, February's producer prices saw a 0.4 percent drop, significantly higher than the expected fall of 0.1 percent.
