German producer prices fall more than expected

Wholesale prices in Germany fell for the first time in seven months in September as energy prices continued to decline, while the annual rate of deflation picked up pace, according to figures from the Federal Statistical Office on Monday.

The producer price index was 0.5% lower in September, following three straight months of 0.2% growth and the first monthly decline since February, Destatis reported. The consensus forecast was for a decline of just 0.2%.

Compared with September 2023, the PPI was down 1.4% after two months of 0.8% declines, marking the 15th consecutive month of wholesale deflation.

Energy prices were 6.6% lower than last September, with mineral oil product prices dropping 14.4% (following a 4.5% year-on-year fall in August), heating oil prices falling 27.8% (-9.2% previously), motor fuel prices slipping 16.1% (-4.4% previously), and electricity prices sinking 9.5% (-1.3% previously).

Excluding energy prices, producer prices were up 1.2% over the year and 0.1% lower over the month.