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19.01.202407:09:00UTC+00Germany Producer Prices Fall 8.6%, More Than Expected

Germany's producer prices declined for the sixth straight month in December due to cheaper energy costs, Destatis reported Friday.

Producer prices dropped 8.6 percent year-over-year in December, faster than the 7.9 percent fall in November. Economists had expected a decline of 8.0 percent.

The overall decrease in December was largely attributed to a 23.5 percent plunge in energy costs amid a continued plunge in electricity costs.

Prices for intermediate goods were 3.7 percent lower compared to last year, primarily due to price reductions in metals and chemical raw materials.

Meanwhile, costs for consumer goods rose 3.2 percent amid higher food prices.

On a monthly basis, producer prices dropped 1.2 percent in December versus a 0.5 percent decrease a month ago. The expected fall was 0.5 percent.

During the whole year 2023, average producer prices declined by 2.4 percent compared to 2022. Excluding energy, producer prices increased by 3.6 percent.

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