Producer prices in Germany dropped 1.4% year-on-year in September 2024, slipping further from a 0.8% decrease in the previous two months.
German producer prices decline in September
This marks the 15th consecutive period of producer deflation, driven by a sharp decline in energy prices (-6.6%), with costs falling for mineral oil products (-14.4%), light heating oil (-27.8%), fuels (-16.1%), natural gas (-10.4%), and electricity (-9.5%). Excluding energy, producer prices rose by 1.2%. Meanwhile, the biggest price increases were seen in capital goods (2%), driven by higher costs for machinery (2.1%) and motor vehicles and parts (1.5%). Prices also rose for consumer goods (1.5%), durable goods (0.9%), and intermediate goods (0.5%).
Monthly fall
On a monthly basis, producer prices fell by 0.5%, the first decline since February, coming more than forecasts of a 0.2% fall and following a 0.2% rise in August.
