German Producer Prices Continue to Decline for Over a Year

• Producer prices in Germany fell by 0.8% in July year-on-year, marking the 13th consecutive month of decline.
• The decrease was primarily driven by lower energy costs, with energy prices dropping 4.1% compared to the previous year.
• Excluding energy, producer prices actually rose by 0.9% in July year-on-year, with increases in intermediate goods, durable consumer goods, and capital goods.
• On a monthly basis, producer prices increased by 0.2% in July compared to June.

Berlin, August 20 (FFN) – Germany’s producer prices continued their downward trend in July, declining by 0.8% compared to the same month last year, according to the latest data from the German Federal Statistical Office (Destatis). This marks the 13th consecutive month of year-on-year declines, although the rate of decrease has slowed from the 1.6% drop observed in June.

The ongoing reduction in producer prices is largely attributed to falling energy costs. In July, energy prices dropped by 4.1% year-on-year, following a 5.9% decline in June. The most significant contributors to this trend were reductions in the prices of natural gas and electricity. Specifically, gas prices fell by 12.3% in July, after a 14.8% drop in June, while electricity prices decreased by 9.2%, compared to an 11% reduction in the previous month.

However, when excluding energy, producer prices in Germany actually showed an increase of 0.9% in July year-on-year. This rise was driven by higher costs in several key areas:

• Intermediate goods saw a price increase of 0.3%.
• Durable consumer goods prices rose by 0.7%.
• Capital goods experienced a 2% increase.
• Food prices also edged up by 0.2% compared to the previous year.

On a month-to-month basis, producer prices in Germany increased by 0.2% in July compared to June, continuing the same growth rate observed in the previous month.

Overview of German Producer Prices