German wholesale prices drops by 0.7% YoY in May
German wholesale prices experienced a year-on-year decrease of 0.7 per cent in May 2024 compared to May 2023, maintaining a pattern of annual reductions, the Federal Statistical Office (Destatis) reported on Thursday.
This follows a 1.8 per cent decrease in April and a 2.6 per cent drop in March. However, compared to April 2024, wholesale prices saw a slight increase of 0.1 per cent.
The primary driver of the year-on-year decline in May was a significant reduction in the prices of chemical products, which fell by 13.9 per cent compared to the same month last year and by 0.9 per cent compared to April 2024.
Prices for iron, steel, and ferrous semi-finished metal products also dropped by 12.1 per cent year-on-year and by 0.5 per cent in April 2024.
Additionally, the costs for grain, unmanufactured tobacco, seeds, and animal feeds, as well as milk, milk products, eggs, and edible fats and oils, decreased by 5.1 per cent compared to May 2023.
In contrast, some categories saw price increases. Non-ferrous ores, metals, and semi-finished metal products were up by 9.7 per cent year-on-year, while coffee, tea, cocoa, and spices rose by 8.2 per cent.
Sugar, confectionery, and bakery products experienced a 7.2 per cent price increase, and fruit, vegetables, and potatoes went up by 6.4 per cent. Tobacco products also saw a 5.4 per cent rise in wholesale prices compared to May 2023.
Despite the overall downward trend, the modest monthly increase indicates potential stabilisation in wholesale prices, which could impact broader economic indicators in Germany.
