London, Monday, 21 November 2022
From a record high of 45.8% in September and August, annual producer inflation in Germany decreased to 34.5% in October 2022. This was less than market expectations of 41.5%, which indicated the lowest figure since June.
Energy costs, including the distribution of natural gas (125.6%) and electricity (90.3%), continued to be the main driver of price increases (85.6% vs 132.2% in September).
Producer prices increased 13.7% from a year ago when energy was excluded.
Intermediate products (15.9%), including metals (21.0%) and fundamental chemicals, fertilisers, and nitrogen compounds (32.8%); non-durable consumer goods (19.0%), such as food (25.1%); and durable consumer goods (11.3%), also experienced large price rises.
Capital goods (7.8%), with autos (5.6%) and machinery (9.5%) leading the way.
Producer prices unexpectedly fell 4.2% on a monthly basis, falling short of expectations for a 0.9% increase and reversing a 2.3% increase in September.
(Source: Federal Statistical Office // Report by: The Decision Maker – Finance editors)