German wholesale price deflation slows to 13-month low

20th Aug 2024 07:59

(Sharecast News) - Wholesale price deflation in Germany eased to its lowest level in 13 months in July, in line with economists' predictions.

The producer price index fell at a year-on-year rate of 0.8% last month, according to data released by the Federal Statistical Office on Tuesday.

While this was the 13th consecutive month of falling prices, the deflation rate halved from the previous month (-1.6%) and was the lowest level since July 2023.

Destatis reported sharp declines in the prices of natural gas (-12.3%) and electricity (-9.2%), driving overall energy prices down 4.1% on last year.

However, the price for intermediate goods was up 0.3%, supporting by increased prices for construction materials like stone, gravel, sand, clay and kaolin (+5.5%), mortar (+5.2%).

Compared with the previous month, headline producer prices were up 0.2% in July, with the inflation rate holding steady from June.