Germany producer price index unexpectedly decreased in May compared to the previous month

According to the report from Federal Statistical Office (Destatis), in May 2019 the index of producer prices for industrial products rose by 1.9% compared with the corresponding month of the preceding year. Economists had expected a 2.1% increase. In April 2019 the annual rate of change all over had been 2.5%.

Compared with the preceding month April 2019 the overall index decreased by 0.1% in May 2019 (+0.5% in April 2019). Economists had expected a 0.2% increase.

In May 2019 the price indices of all main industrial groups increased compared with May 2018. Energy prices, the development of which had the greatest impact on the growth of the overall index, rose by 4.5% (-0.6% compared to April 2019). The overall index disregarding energy was 1.1% up on May 2018 and unchanged compared to April 2019.

Prices of capital goods increased by 1.6% (+0.1% compared to April 2019). Prices of non-durable consumer goods increased by 1.8% compared to May 2018 (+0.4% on April 2019). Food prices were up 2.3%. Prices of intermediate goods increased by 0.5% (-0.3% compared to April 2019). Prices of durable consumer goods were up 1.4% (unchanged from April to May 2019).