Producer prices in Germany in September collapsed by a record 14.7%

According to the German Federal Statistical Office, producer prices in Germany in September showed a historic low, falling by 14.7% year-on-year. Analysts had expected a more moderate decline of 14.2%.

This was the strongest drop in producer prices in the entire history of observations since 1949. In August, enterprises reduced prices by 12.6%.

The main contribution to the overall decline was made by a 33.5% drop in the cost of energy carriers, including a significant decrease in electricity prices by 46.2%. There was also a decrease in the cost of intermediate goods by 4.2%, including metals (-11.2%), fertilizers and nitrogen (-42.9%) and wood (-20.8%).

Prices for non-durable goods, on the contrary, increased by 5.3%. Food rose in price by 5.5%, consumer durable goods increased in price by 4.7%: furniture (+5.1%) and household appliances (+5.2%). 

If we do not take into account energy carriers, the producer price level increased by 0.8% in September. On a monthly basis, the indicator decreased by 0.2% in September, despite expectations of a 0.4% increase.