German producer prices suffer worst year-on-year drop on record

German producer prices suffered their worst year-on-year fall in September since records began in 1949, according to figures released by Destatis on Friday.

Producer prices declined by 14.7% on the year following a 12.6% fall the month before and versus expectations for a 14.2% drop.

Destatis explained that the development was mainly due to a base effect caused by the very high price level of the previous year. It noted that as a result of the war in Ukraine, the producer price increase in August and September 2022 - up 45.8% each from the same month a year earlier - was the highest ever recorded.

On the month, producer prices dipped 0.2% in September.