April sees unexpected decline in German producer prices

German industrial product prices fell by 3.3 per cent in April 2024, compared to the same month in 2023, the federal statistics office reported on Tuesday.

This decline follows a 70 per cent plunge in sales volumes since the pandemic’s onset. Notably, energy prices dropped significantly, with natural gas and electricity costs down by 18.0 per cent and 14.0 per cent, respectively, year-on-year.

Intermediate goods prices also decreased by 3.1 per cent, driven by lower prices for paper products and basic chemicals.

However, capital goods prices rose by 2.4 per cent, and non-durable consumer goods saw a slight increase of 0.3 per cent. Durable consumer goods were 1.0 per cent more expensive in April 2024 compared to the previous year.

These fluctuations reflect the challenges faced by Germany’s economy, with inflation risks and energy costs impacting various sectors. The nation aims to navigate these complexities while maintaining stability and growth.