WIESBADEN (dpa-AFX) – The decline in prices at manufacturer level in Germany has surprisingly accelerated thanks to cheaper energy costs. Producer prices fell by 1.8 percent year-on-year in October, as the Federal Statistical Office reported on Thursday in Wiesbaden. Producer prices have fallen for the eighth month in a row, although the decline in September was somewhat weaker at 1.7 percent. Analysts had expected the annual rate to remain unchanged.
In a month-on-month comparison, prices increased by 0.1 percent, the statement said.
The index of producer prices for commercial products measures the development of prices in the mining, manufacturing and energy and water industries for products from manufacturers – before they go on sale. Producer prices therefore tend to also have an impact on consumer prices.
Once again, producer prices were strongly influenced by the cost of energy. This was 7.5 percent cheaper in October than in the same month last year. The decline in the price of natural gas had the greatest impact. Here the Federal Office reported a decline of 12.1 percent. Electricity was also significantly cheaper year-on-year./jkr/stk