German October PPI falls 11% year-on-year

German producer prices fell 11% on an annual basis and in line with expectations in October, the federal statistics office Destatis said on Monday.

A 27.9% yearly fall in energy prices was cited as the main reason for the decline. With energy prices excluded, prices were 0.2% higher than in October 2022, Destatis added.

On a month-on-month basis, producer prices fell by 0.1%.

The fall follows a record fall of 14.7% in September - the largest since data were first collected in 1949.

"The development is still mainly attributable to a base effect caused by the very high price level of the previous year. As a result of the war in Ukraine, the producer price increase in August and September 2022 (+45.8% each from the same month a year earlier) was the highest ever registered since records began," Destatis said.

"Lower energy prices were the main reason for the year-on-year decline in producer prices. Intermediate goods were also less expensive than in the same month a year earlier, whereas higher prices had to be paid for consumer and capital goods than in October 2022."

Reporting by Frank Prenesti for Sharecast.com