Germany’s producer prices declined at the fastest pace in seven months and the fall was much worse than the decrease economists had predicted, preliminary data from Destatis revealed Tuesday.
The industrial producer price index dropped 2.1 percent year-on-year following a 1.7 percent slump in August. Economists had expected a 1.8 percent fall.
The latest decline was the biggest since February, when prices fell at a similar rate. In January, producer prices tumbled 2.2 percent. Producer prices have been falling since August 2013.
Energy prices decreased 6.1 percent annually and prices of non-durable consumer goods fell 1 percent. Intermediate goods prices dropped 1.4 percent. Meanwhile, prices of capital goods and durable consumer goods rose 0.7 percent and 1.3 percent, respectively.
Month-on-month, producer prices fell 0.4 percent after a 0.5 percent drop in August and marked two consecutive months of decrease. Economists were looking for a modest 0.2 percent decline.
Excluding energy, producer prices rose 0.6 percent year-on-year, but fell 0.1 percent from the previous month. Petroleum product prices registered a 19.6 percent slump.
The material has been provided by InstaForex Company – www.instaforex.com