In July, prices at manufacturer level in Germany fell as sharply as they last did during the global economic and financial crisis. The producer prices of commercial products fell by 6.0 percent compared to the same month last year, as the Federal Statistical Office announced on Monday in Wiesbaden. The sharp decline is also due to the fact that prices had skyrocketed as a result of Russia’s war of aggression in Ukraine the year before. According to the information, it was the first decline since November 2020 and the sharpest drop since October 2009 as a result of the financial and economic crisis.
Compared to the previous month, producer prices fell by 1.1 percent in July.
Above all, energy and intermediate goods such as metals and wood became significantly cheaper within a year. The rise in prices for consumer and capital goods was no longer as strong as in the previous months. Consumer goods prices in July were 8.1 percent higher than a year earlier. Food prices increased by 9.2 percent at the manufacturer level. Durable goods were 5.8 percent more expensive, with furniture and household appliances in particular costing more.
Producer prices capture the price pressure at the producer level by reflecting producers’ selling prices. The development also affects consumer prices, on which the European Central Bank (ECB) bases its monetary policy. Due to high inflation, the ECB has now raised its key interest rates nine times in a row since July 2022. (dpa)