June’s fall was primarily due to the prices of energy, such as natural gas and electricity falling, as well as the costs of intermediate goods decreasing too.
The German year-on-year producer price index (PPI) report for June came in on Friday morning at -1.6%, according to the Federal Statistical Office. This was in line with analyst expectations, as well as being the 12th month in a row of producer prices falling. However, it was still higher than the -2.2% seen in May.
June’s figure was mainly supported by energy prices falling -5.9%, with electricity prices dropping -11% and natural prices plunging -14.8%. Intermediate goods’ costs also decreased -0.9%, with basic chemicals’ costs sliding -3.4% and fiber-board costs dropping -8.9%.
Paper, paper products and paperboard costs also fell -4.4%, while wood products’ costs slipped -3.8%. Metals’ costs lagged -4.1%.
However, capital goods’ prices inched up 2.3%, with the prices of motor vehicles, semi-trailers and trailers edging up 1.5%. Machinery prices also increased 2.5%. Similarly, the cost of non-durable consumer goods’ inched up 0.6%, primarily driven by confectionary prices jumping 24.7% and butter prices surging 24.5%. Durable consumer goods’ costs also edged up 0.7%.
Without taking energy prices into consideration, producer prices rose 0.3%.
The month-on-month producer price index came in at 0.2%, above May’s 0%, as well as analyst expectations of 0.1%.
