Data published by the Federal Statistical Office (Destatis) showed that in March, producer prices rose by 0.2%, partially offsetting the February decline (0.4%). Economists had expected prices to remain unchanged. In annual terms, producer prices fell by 2.9% after declining by 4.1% in February. Consensus estimates suggested a 4.2% drop. It was the ninth straight month of decline.
Destatis said that lower energy prices continued to be the main reason for the year-on-year decline in producer prices. Intermediate goods were also less expensive than in March 2023, whereas higher prices had to be paid for consumer and capital goods. In March, energy prices decreased by 7.0% per annum, but remained unchanged on a monthly basis. Lower prices for natural gas and electricity had the biggest influence on the year-on-year rate of change for energy. Across all customer groups, gas prices declined by 15.4% per annum and by 0.6% mom. Electricity prices decreased by 12.6% compared to March 2023 and rose by 0.1% on a monthly basis. Meanwhile, intermediate goods prices fell by 3.7% per annum and increased by 0.1% compared to February. The prices of non-durable consumer goods increased by 0.3% per annum and by 0.6% m/m. Food prices in March were slightly down (-0.3%) from March 2023 (+0.9% month on month). Durable consumer goods were 1.0% more expensive than in March 2023. Compared with February 2024, the prices of durable consumer goods increased by 0.1%. Capital goods prices rose by 2.8% year on year and by 0.2% compared with February 2024.
The data also showed that in March, the producer price index excluding energy fell by 0.8% per annum and increased by 0.3% compared to February.