Germany’s producer inflation down 0.8% in July ’24

Germany’s producer prices for industrial products were 0.8 per cent lower in July 2024, compared to the same month in 2023. This follows a year-on-year decrease of 1.6 per cent in June 2024.

Additionally, the Federal Statistical Office (Destatis) noted a 0.2 per cent increase in producer prices from June to July 2024

The primary driver of the year-on-year decline was a 4.1 per cent drop in energy prices. Specifically, natural gas prices fell by 12.3 per cent and electricity prices decreased by 9.2 per cent compared to July 2023.

In contrast, petroleum product prices rose by 2.7 per cent and heating oil prices increased by 7.5 per cent year-on-year.

Excluding energy, producer prices increased by 0.9 per cent from July 2023 to July 2024. Notable changes included a 2.0 per cent rise in the prices of capital goods, with machinery and motor vehicles seeing increases of 2.1 per cent and 1.3 per cent, respectively.

Non-durable consumer goods prices were up by 0.6 per cent, with significant rises in butter (33.0 per cent) and confectionery (21.5 per cent).

Conversely, metal prices dropped by 2.0 per cent, with pig iron and steel seeing a substantial decrease of 9.0 per cent. Wood products experienced varied changes, with chipboard prices falling by 12.0 per cent and hardwood sawn timber rising by 3.6 per cent.

The producer price index was rebased to 2021 as the new base year, reflecting updated domestic industrial sales data.

Attribution: The Federal Statistical Office of Germany (Destatis)

Subediting: M. S. Salama