According to a recent report from the Federal Statistical Office in Germany, producer prices fell more than expected for the month of September, falling by 1.4% compared to the previous year. This fall exceeded the expectations of analysts, who had forecast a drop of 1.0%.
The significant decline in producer prices is mainly attributed to a substantial reduction in energy costs, which were 6.6% lower than in September of the previous year. In particular, the price of petroleum products decreased by 14.4%.
Despite the overall decline, when energy prices are excluded, we see a 1.2% increase in producer prices. This increase was fueled by high costs for capital goods, consumer goods and intermediate goods.
This September marks the 15th consecutive month of decline in Germany’s producer price index, which is an important indicator of inflationary trends. Additionally, German inflation, adjusted to align with European Union standards, showed a slight decline to 1.8% in September from 2.0% in August, as confirmed by the statistics office earlier this month.
On a monthly basis, September producer prices saw a larger decline than expected, falling 0.5% compared to the 0.2% drop expected by analysts.
Reuters contributed to this article.
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