German Annual Producer Inflation Slowed to 2.3% in September, From 7.9% in August

German producer prices in September on a monthly basis, producer prices were up 2.3%, slowing sharply from the 7.9% surge in August but topping expectations of 1.3%. On an annual basis PPI matched the surge in August to a record high of 45.8% and above market forecasts of 44.7%. Energy prices remained the biggest upward contributor (132.2% vs 139.0% in August), the distribution of natural gas (192.4%) and electricity (158.3%). Excluding energy, producer prices rose 14.0% from a year earlier. 

Germany Finance

Inflation continues to run rampant throughout the world with central banks raising rates ad nauseum. Energy and food pricing pressures continue to elevate globally. The effect is showing some variance by location. Germany’s consumer inflation has been pinging the highest reading since German reunification.

Inflation remains vertical due to the war in Ukraine, Russian cuts in gas supply, marked price increases at the upstream stages of the economic process and interruptions in supply chains caused by the Covid-19 pandemic.

Germany September 2022 PPI

  • German PPI (M/M) Sep: 2.3% (est 1.5%; prev 7.9%)
  • German PPI (Y/Y) Sep: 45.8% (est 45.4%; prev 45.8%)
  • Excluding energy, producer prices climbed 14.0% from a year earlier.
  • Energy prices remained the biggest upward contributor (132.2% vs 139.0% in August), namely the distribution of natural gas (192.4%) and electricity (158.3%).
  • Significant price increases were seen for intermediate goods (16.8%), particularly metals (18.1%) and basic chemicals, fertilizers and nitrogen compounds (33.5%);
  • Non-durable consumer goods rose (18.3%), such as food (24.2%);
  • Durable consumer goods rose (10.9%);
  • Capital goods rose (7.8%), mainly led by machinery (9.1%) and vehicles (6.3%).
Germany Producer Prices Annual Change
Germany Producer Price Inflation MoM

Latest data released by Destatis – 20 October 2022


Source: Destatis, TC, NSI

From The TradersCommunity Research Desk