German producer prices post record fall in August

By Tuba Ongun

Producer prices in Germany posted the largest annual decline in their history, the country's federal statistical bureau said on Wednesday.

The producer prices of industrial products dropped 12.6% year-on-year in August, owing to a base effect, Destatis said, explaining that as a consequence of the Russia-Ukraine war, the annual hike of 45.8% in producer prices in August 2022 was the highest seen since records began.

The fall in the figure gained momentum from a 6% decline in July.

"The main reason for the year-on-year decline in producer prices were lower energy prices, but also decreases in the prices of intermediate goods," Destatis added.

Energy prices in August posted a decrease of 31.9% from a year earlier, and intermediate goods prices were down 4.1% in the same period.

Price rises for consumer goods and capital goods continued to slow in August.