Germany's producer prices decline 7.9% YoY in November 2023

The decrease in November 2023, compared to October 2023, was more modest at 0.5 per cent. This downward movement in prices is primarily driven by a notable decrease in energy costs, which have been the primary factor behind the YoY decline in producer prices.

Energy prices in November 2023 were significantly lower than the previous year, down 21.4 per cent. This decrease is mainly due to lower electricity prices, which fell by 30.8 per cent compared to November 2022 and 1.5 per cent from October 2023, across all customer groups. Excluding energy, producer prices saw a modest increase of 0.3 per cent compared to November 2022 but showed a slight decrease of 0.1 per cent compared to October 2023, as per Destatis.

Intermediate goods also showed a price decrease, down 4.1 per cent from November 2022 and 0.2 per cent from October 2023. The drop in prices for these goods is attributed to lower costs for metals and basic chemicals.

On the other hand, consumer goods experienced a price increase. Non-durable consumer goods, particularly affected by higher food prices, were 3.7 per cent more expensive in November 2023 than in the same month last year, although prices remained unchanged from October 2023. Durable consumer goods saw a YoY rise of 4 per cent and a marginal increase of 0.1 per cent from October 2023.

Fibre2Fashion News Desk (DP)