Data published by the Federal Statistical Office (Destatis) showed that in September, producer prices fell by 0.5%, offsetting the August increase (+0.2%). It was the first drop since February and the sharpest since December 2023. Economists had expected a decrease of 0.2%. In annual terms, producer prices fell by 1.4%, accelerating compared to August (-0.8%). Consensus estimates suggested a 0.8% drop. It was the 15th fall in a row.
Destatis said that lower energy prices continued to be the main reason for the year-on-year decline in producer prices. In September, energy prices fell by 6.6% per annum, but declined by 1.5% on a monthly basis. Lower prices for mineral oil products (-14.4% per annum and -4.5% m/m) had the biggest influence on the year-on-year rate of change for energy. Heating oil prices fell by 27.8% y/y and 9.2% m/m, while motor fuel prices fell by 16.1% y/y and 4.4% m/m. Across all customer groups, gas prices declined by 10.4% per annum and by 1.0% m/m. Electricity cost 9.5% less than in September 2023, and 1.3% less than in August 2024, across all consumer groups.
Meanwhile, intermediate goods prices rose by 0.5% per year, but fell by 0.2% compared to August. The prices of non-durable consumer goods increased by 1.5% per annum and by 0.2% m/m. Food was 1.5% more expensive than in September 2023. Durable consumer goods were 0.9% more expensive than in September 2023, but remained unchanged compared to August. Capital goods prices rose by 2.0% year on year and remained unchanged compared to August
The data also showed that in September, the producer price index excluding energy increased by 1.2% per year and fell by 0.1% compared to August.