Data published by the Federal Statistical Office (Destatis) showed that in October, producer prices rose by 0.2%, as expected, after falling by 0.5% in September. It was the eighth increase since the beginning of 2024. In annual terms, producer prices fell by 1.1%, slowing compared to September (-1.4%). Consensus also estimates suggested a 1.1% drop. It was the 16th 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, while higher prices had to be paid for capital, consumer and intermediate goods. In October, energy prices fell by 5.6% per annum, but rose by 0.6% on a monthly basis. Lower prices for mineral oil products (-12.9% 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 22.7% y/y and increased by 4.9% m/m, while motor fuel prices fell by 12.1% y/y and increased by 1.9% m/m. Across all customer groups, gas prices declined by 10.1% per annum and rose by 1.1% m/m. Electricity cost 7.3% less than in October 2023 but was 0.5% more expensive than in September, across all consumer groups.
Meanwhile, intermediate goods prices rose by 0.4% per year, but fell by 0.3% compared to September. The prices of non-durable consumer goods increased by 1.9% per annum and by 0.2% m/m. Food was 2.1% more expensive than in October 2023. Durable consumer goods cost 0.9% more in October 2024 than a year earlier (+0.2% m/mr). Capital goods prices rose by 2.0% year on year and by 0.2% m/m.
The data also showed that in October, the producer price index excluding energy increased by 1.3% per year and remained unchanged compared with September.