German producer prices continue to fall in October: Destatis-Xinhua

German producer prices continue to fall in October: Destatis

Source: Xinhua| 2023-11-20 23:18:31|Editor: huaxia

BERLIN, Nov. 20 (Xinhua) -- Inflationary pressure in Germany is easing further. In October, producer prices, an early indicator for inflation, fell 11.0 percent year-on-year, the Federal Statistical Office (Destatis) said on Monday.

Producer prices in Europe's largest economy already saw the sharpest drop on record at 14.7 percent in September. Last year, prices rose significantly due to the Russia-Ukraine conflict.

Energy prices, which were the main price driver in 2022, fell particularly sharply in October, down 27.9 percent year-on-year. Electricity prices even plummeted by more than a third.

The increase in producer prices for food slowed to 3.7 percent. Prices for processed potatoes rose particularly sharply by almost 30 percent, while preserved fruit and vegetables as well as pork also saw double-digit price increases.

"Consumers are still feeling the higher food and energy prices," Destatis President Ruth Brand said earlier this month when presenting the latest inflation figures. Despite a further slowdown to 3.8 percent year-on-year, inflation remained high in a medium and long-term comparison.

German consumer prices are also normalizing more slowly in comparison to other European countries. In the eurozone, the inflation rate already slowed to 2.9 percent year-on-year in October, according to official figures.

The European Central Bank's (ECB) goal is to push inflation below 2 percent. To this end, the ECB has so far raised its key interest rate to 4.5 percent but recently paused the rise.

"Taking this pause to assess the economic outlook is sensible: there has been much progress on the inflation front and the downside risks to the growth outlook have intensified," Moritz Schularick, president of the Kiel Institute for the World Economy (IfW Kiel), said at the end of October.