Economic news
20.06.2024

German producer price index stabilized in May

Data published by the Federal Statistical Office (Destatis) showed that in May, producer prices were unchanged after an increase of 0.2% in April. Economists expected growth of 0.3%. In annual terms, producer prices fell by 2.2%, slowing compared to April (-3.3%). Consensus estimates suggested a 3.2% drop. It was the 11th fall in a row, but the weakest in this series.

Destatis said that lower energy prices continued to be the main reason for the year-on-year decline in producer prices. In May, energy prices fell by 6.4% per annum, and decreased by 0.5% 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 16.3% per annum and by 0.6% m/m. Electricity cost 11.3% less in May 2024 than in May 2023 across all customer groups. Compared with April, electricity prices increased by 0.8%. Meanwhile, intermediate goods prices fell by 1.8% per year and increased by 0.3% compared to April. The prices of non-durable consumer goods increased by 0.4% per annum and by 0.1% m/m. Food prices in May were slightly down (-0.2%) from May 2023. Durable consumer goods were 0.7% more expensive than in May 2023. They declined by 0.1% from April. Capital goods prices rose by 2.4% year on year and by 0.2% compared with April.

The data also showed that in May, the producer price index excluding energy remained unchanged from May 2023 and rose by 0.3% compared with April.

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