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- German producer price growth slowed sharply in August
German producer price growth slowed sharply in August
According to the report from the Federal Statistical Office (Destatis), in August 2019 the index of producer prices for industrial products rose by 0.3% compared with the corresponding month of the preceding year. Economists had expected a 0.6% increase. In July 2019 the annual rate of change all over had been +1.1%.
Compared with the preceding month July 2019 the overall index decreased by 0.5% in August 2019 (+0.1% in July 2019).
The greatest impact on the growth of the overall index compared to August 2018 had the development of electricity prices. These were up 6.0% (-1.1% compared to July 2019). Energy prices as a whole decreased by 0.3% (-1.6% compared to July 2019). On an annual basis prices of natural gas (distribution) decreased by 5.0% and prices of petroleum products by 5.7%.
The overall index disregarding energy was 0.6% up on August 2018 and remained unchanged compared to July 2019.
Prices of non-durable consumer goods increased by 1.7% compared to August 2018 (+0.1% on July 2019). Food prices were up 2.2%. Prices of capital goods increased by 1.5%, prices of durable consumer goods were up 1.3%. Prices of intermediate goods decreased by 0.9% compared to August 2018 (-0.2% on July 2019). Prices decreased especially regarding electronic integrated circuits (-13.7%) and metallic secondary raw materials (-13.6%).
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