Germany’s producer prices decreased by 6% year-on-year in July, posting the first decline since November 2020, the country’s federal statistical bureau stated on Monday.
The decline is largely due to a base effect, Destatis said and recalled that the prices had soared in July 2022 as a consequence of the Russian war on Ukraine.
“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,” it noted.
Energy prices in Germany dropped by 19.3% in July on a yearly basis, it said, adding that lower electricity prices had the biggest impact on producer inflation.—AA
