Industrial product producer prices registered another annual decline.
Economic data showed a drop in producer prices for commodities in May, compared to the same month last year. The German Statistical Office revealed this on Thursday, stating a decrease of 2.2% compared to April, yet no change compared to the previous year. The cause, as reported by statisticians, was attributed to the continuous reduction in energy product prices.
Energy products, specifically, were 6.4% less pricey in May than in the same period the year before. Gas prices experienced a significant decrease of 16.3%, while electricity prices dropped by 11.3%. Apart from energy, commercial product prices for commodities such as food, cars, and fuels would have remained stable, according to the report.
In 2021 and 2022, commercial product prices were mainly boosted due to the surge in energy prices. However, last year, these prices significantly decreased, resulting in the observed decrease in producer prices.
Pre-production goods like metals, raw materials, and animal feed, in general, were 1.8% cheaper on a year-on-year basis. Significant price reductions were evident in paper and paper products, as well as chemical raw materials. On the flip side, investment goods like machinery and vehicles saw an increase of 2.4% in price.
