German producer prices decline at slowest rate in 13 months

By Tuba Ongun

Producer prices in Germany decreased 0.8% year-over-year in July, marking the slowest decline since June 2023, according to the country’s statistical bureau on Tuesday.

The figure follows a 1.6% decrease in June, marking the 13th consecutive month of decline, primarily due to falling energy costs, data from Destatis showed.

Energy prices dropped 4.1% year-over-year in July, with significant declines in natural gas and electricity costs, down 12.3% and 9.2%, respectively.

Meanwhile, capital goods prices rose 2% annually in July, driven by increases in machinery (up 2.1%) and motor vehicles (up 1.3%).

The cost of non-durable consumer goods increased by 0.6%, while durable consumer goods gained 0.7% during the same period.

On a monthly basis, producer prices rose 0.2% from June.