German producer prices fall by most in nine months

(Sharecast News) - Wholesale price deflation in Germany picked up to its steepest rate in nine months in June, according to the Federal Statistical Office on Friday. The producer price index fell at a year-on-year clip of 1.3% last month, following a 1.2% drop in May, Destatis reported.

This was the fourth straight month of annual producer price deflation and in line with economists' predictions.

Energy prices were the main reason for the year-on-year fall, with prices down 6.4% compared with June 2024, as electricity prices dropped 8.8%.

Natural gas prices were also down 6.9%, while mineral oil cost 7.7% less, heating oil was 6.4% cheaper and motor fuel prices fell 4.2%.

In contrast, capital goods prices were up 1.7% on last year, while non-durable consumer goods were 3.6% higher and durable consumer goods were 1.7% more expensive. Intermediate goods meanwhile fell 0.4%.