Germany Producer Prices Change

Producer prices in Germany declined by 1.1% year-on-year in October 2024, easing from a 1.4% fall in the previous month and aligning with market expectations. This marked the 16th consecutive period of producer deflation, driven by a sharp drop in energy prices (-5.6%), with costs falling for mineral oil products (-12.9%), light heating oil (-22.7%), fuels (-12.1%), natural gas (-10.1%), and electricity (-7.3%). Excluding energy, producer prices rose by 1.3%. The largest price increases were observed in capital goods (2.0%), led by higher costs for machinery (2.0%) and motor vehicles and parts (1.4%). Prices also rose for consumer goods (1.9%), durable goods (0.9%), and intermediate goods (0.4%). On a monthly basis, producer prices increased by 0.2%, rebounding from a 0.5% drop in September, in line with market forecasts.