In Germany, prices at manufacturer level have fallen more significantly than ever since the survey began. In September, producer prices fell by 14.7 percent year-on-year, as the Federal Statistical Office in Wiesbaden announced. This was the sharpest decline since the surveys began in 1949. A corresponding record from the previous month was surpassed.
The statisticians explained the sharp price decline primarily with a base effect: Last year, the prices that manufacturers received for their goods rose at a record rate of 45.8 percent. The main reason was Russia’s war against Ukraine, which made energy and many raw materials extremely expensive. However, prices have now fallen again, which is also depressing general inflation at the company level.
The decisive factor behind the sharp decline in producer prices was once again the price declines for energy, but also for intermediate goods. Energy was 35.3 percent cheaper than a year before. Energy prices also fell month-on-month. Consumer and capital goods were more expensive than a year before.
The producer prices reflect the selling prices of the producers. The development also affects consumer prices, on which the European Central Bank (ECB) bases its monetary policy. Because of high inflation, the ECB has raised its key interest rates significantly since last summer.
