Producer prices in Germany see annual decline of 1.1 percent last month
Date
11/20/2024 6:51:59 AM
(MENAFN) Producer prices in Germany experienced a year-on-year decline of 1.1 percent in October, as reported by the federal statistical office, Destatis, on Wednesday. This marks a continued downward trend in the country’s producer prices, with the annual drop in September being slightly higher at 1.4 percent. October’s decrease represents the 16th consecutive month of declining producer prices, highlighting the sustained pressure on German production costs over an extended period.
The primary driver behind the year-on-year reduction in producer prices was the decrease in energy costs, which fell by 5.6 percent compared to October of the previous year. Energy prices have been a significant contributor to the overall trend, reflecting global energy price dynamics. Despite this decline, the prices for other categories of goods, such as capital goods, consumer goods, and intermediate goods, actually increased during the same period, which partly offset the overall reduction in producer prices.
In terms of monthly changes, producer prices saw a slight increase of 0.2 percent in October compared to September. While the monthly rise is modest, it indicates that the downward momentum in prices may be stabilizing, with some categories showing price increases. This small uptick in monthly figures suggests that, despite the ongoing yearly declines, certain sectors are experiencing price pressures in the short term.
Overall, the German economy continues to face challenges in controlling producer prices, with energy price fluctuations playing a dominant role in the ongoing adjustments. While some areas, such as capital and consumer goods, are seeing price hikes, the broader trend still reflects the complex balancing act between energy cost reductions and rising prices in other sectors.
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