According to data released by the Federal Statistical Office of Germany on October 21, the Producer Price Index (PPI) for industrial products in Germany decreased by 1.4% year-on-year and 0.5% month-on-month in September.
A representative from the Federal Statistical Office highlighted that the primary reason for this decline in the PPI during the month was the drop in energy prices, specifically in September 2024. Meanwhile, the prices for capital goods, consumer goods, and intermediate products have seen an increase.
The data revealed that energy prices fell by 6.6% year-on-year in September, with oil product prices experiencing the most significant decrease at 14.4%. In contrast, the prices for intermediate products rose by 0.5%. Capital goods and consumer goods experienced year-on-year increases of 2.0% and 1.5%, respectively.
Furthermore, when excluding the impact of energy prices, the PPI actually showed a year-on-year increase of 1.2% in September, although it fell by 0.1% compared to the previous month.
The Producer Price Index is often seen as a leading indicator for changes in the Consumer Price Index (CPI). German media report that while the decline in energy prices has eased some pressures in various industries, the rising costs of capital goods are overshadowing hopes for a sustainable economic recovery. It remains to be seen whether the downward trend in energy prices will continue, or if other price factors, especially those related to consumer goods, will contribute to additional price pressures.
