FX.co ★ Factory inflation in Germany follows steady downtrend

Citing official data from Germany's federal statistical agency Destatis, Reuters reported that producer prices in Germany fell lower than expected in September. The annual PPI decreased by 1.4%, while experts had anticipated a 1% decline. Interestingly, factory inflation in Germany has been declining for 15 months straight.

The main reason for this significant drop was the slump in energy prices, which were down 6.6% compared to the same month in 2023. Importantly, the price of mineral oil products plummeted by 14.4%.

Excluding this volatile component, core producer prices in Germany actually rose by 1.2%. Furthermore, experts highlighted an increase in expenditures on capital, consumer, and intermediate goods.

Analysts pointed out that Germany’s producer price index logged a decline in September for the 15th consecutive month. This indicator is crucial for estimating further consumer inflation.

Besides, Germany's HICP inched down to 1.8% in September year-on-year following 2% in August. Producer prices adjusted to the EU slipped by 0.5% in September on a monthly basis, although experts had predicted a decrease of only 0.2%.