German PPI unexpectedly turns positive

The annual change in wholesale prices in Germany unexpectedly turned positive in November for the first time in 17 months, according to data from Destatis on Friday.

Producer prices were 0.1% higher than November 2023, following a 1.1% year-on-year drop in October, the Federal Statistical Office reported.

The consensus forecast was for a decline of 0.3%.

A 1.9% annual jump in capital goods prices was the main reason for the overall increase in producer prices, with prices rising for machinery, motor vehicles, trailers and semi-trailers.

Prices for non-durable consumer goods, durable consumer goods and intermediate goods were also higher than last year, but energy prices fell 2.4%, with mineral oil, heating oil and motor fuel prices all falling sharply.

When energy prices are excluded, annual producer price inflation would have been 1.3% in November – in line with October's rate.