German producer prices fall for fifth month in a row
German producer prices fell sharply in November for the fifth month in a row. Producers of industrial products - from petrol to sugar - charged an average of 7.9 percent less than a year earlier, according to the Federal Statistical Office on Wednesday. Economists polled by the Reuters news agency had expected a fall of 7.5 percent after a drop of 11.0 percent in October. The September fall of 14.7 percent was the biggest since the survey began in 1949. Producer prices also fell from October to November, by 0.5 percent.
This development is good news for consumers: the statistics record the prices of products before they are processed or go on sale. They therefore allow early conclusions to be drawn about the development of consumer prices. At 3.2%, these rose in November at the slowest rate since June 2021.
"The development is still due in particular to a base effect due to the high price level in the previous year," said the statisticians on producer prices. In August and September 2022, these had risen more sharply than ever before (+45.8% in both cases) as a result of the war in Ukraine.
Prices were dampened above all by energy, which cost 21.4% less than in November 2022, with electricity prices falling by 30.8%. Light heating oil fell by 15.7% and fuels such as petrol by 9.0%. Natural gas was a good fifth less expensive.
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The five-month decline in German producer prices, including a 0.5% decrease in November, has contributed to the slowest monthly rise in consumer prices since June 2021. This trend is particularly significant given that November marks the fifth consecutive month of price reductions for industrial goods producers in Germany.
Despite the current positive trajectory, economists attribute the decrease in producer prices predominantly to a base effect, as prices had reached unprecedented highs in August and September 2022 due to the impact of the Ukraine war on energy prices.
Source: www.ntv.de
