Wholesale prices in Germany drop 0.8 percent, slowest pace in 3 months


(MENAFN) In October, Germany’s wholesale prices dropped by 0.8 percent compared to the same month last year, marking the slowest pace of decline in three months, according to data released by the German statistical office, Destatis. This decline was less severe than the 1.6 percent drop recorded in September, continuing a trend of consecutive monthly decreases. Despite the slower pace of decline, the October figure marked the 18th consecutive month in which wholesale prices have fallen, reflecting ongoing challenges in the wholesale sector.

The primary factor contributing to this overall drop was a significant 11.5 percent decrease in the prices of mineral oil products on an annual basis. Other sectors also saw declines, including iron, steel, and ferrous semi-finished metal products, which experienced a 5.3 percent fall, as well as a 4.9 percent drop in the prices of computer and peripheral equipment. Additionally, chemical products saw a decline of 4.6 percent, further contributing to the overall downward trend in wholesale prices.

Conversely, certain sectors saw notable price increases. The prices of coffee, tea, cocoa, and spices surged by 26 percent, while non-ferrous ores, metals, and semi-finished metal products rose by 24 percent. Additionally, items like sugar, confectionery, bakery products, waste, and scrap saw price hikes, with increases of 9.9 percent, 8.3 percent, and 6.2 percent, respectively. These increases in specific categories helped offset some of the broader declines observed in other sectors.

On a monthly basis, wholesale prices rose by 0.4 percent in October after a 0.3 percent decline in September. This monthly increase suggests some stabilization in the wholesale market following the previous month’s drop, although it remains to be seen whether this will lead to a sustained rebound in the coming months.

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