Germany witnessed a sharper decline in producer prices in September, largely attributed to a significant reduction in energy costs, according to data published by Destatis on Monday. On a yearly comparison, producer prices fell by 1.4%, deepening from the 0.8% decrease observed in both August and July.
The annual drop was predominantly driven by the notable decline in energy prices, which plunged 6.6%. Conversely, prices for capital, consumer, and intermediate goods rose. Specifically, capital goods prices increased by 2.0%, consumer goods prices rose by 1.5%, and durable consumer goods were 0.9% more expensive compared to the previous year. The intermediate goods sector experienced a modest growth of 0.5% in prices.
When energy is excluded, producer prices showed a yearly increase of 1.2%, although they experienced a slight monthly decline of 0.1%. On a month-to-month basis, producer prices overall fell by 0.5%, which contrasts with the 0.2% rise recorded in August.
