Business News Asia
As reported by the Federal Statistical Office, producer prices fell in October. This was mainly due to the decline in electricity and natural gas prices.
The producer price index (PPI) fell by 4.2% in October compared with September. This deviates from economists’ expectations, who had expected an increase of 0.9%. It is the first month since May 2020 in which the PPI fell compared to the previous month.
On a year-over-year basis, the PPI rose 34.5% in October, signaling a slowdown after a record 45.8% increase in August and July.
According to the report, electricity bills decreased by 16.9% across all customer groups compared to September 2022, while the price of natural gas decreased by 9.0%.
Changes in the PPI are an indicator of the development of the consumer price index (CPI), as manufacturers often pass on price increases to consumers. The German consumer price index (CPI), which is adjusted to the average consumer price index (HICP) of the European Union (EU), rose to 11.6% year-on-year in October.