Since data gathering began in 1949, German producer prices experienced their highest annual decrease in August, raising optimism for further deflation in Europe’s largest economy.
According to data released on Wednesday by the federal statistics office, producer prices dropped 12.6% on a yearly basis.
Reuters polled analysts, and they predicted a decline of 12.6%.
Due to the conflict in Ukraine, producer price growth in August 2022 was the greatest ever recorded while records have been kept, at 45.8% year over year. As a result, there was a noticeable fall between August 2022 and August 2023.
Since September of last year, the producer prices index in Germany, which is regarded as a crucial inflation indicator, has been gradually declining.
Due to easing energy price pressures, German producer prices decreased by 6.0% in July, marking the first decrease in more than two and a half years.
According to data from the statistics office, producer prices increased 0.3% in August compared to July.