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Germany’s October PPI Plummets by 11% Amid Energy Price Drop

Germany’s Producer Price Index (PPI) for October took a substantial hit, plummeting by 11%, as per data released by the German Statistical Office today (Nov. 20). This decline aligns with the continued downward trend seen after a record low in September.

The sharp decrease in the PPI, as anticipated by analysts in a Reuters poll, is primarily attributed to a staggering 27.9% year-on-year fall in energy prices, revealed by the German statistics office. This significant drop in energy costs stands out as the primary driver behind the overall decline in the PPI index.

When excluding the impact of energy prices, the PPI for October displayed a modest increase of 0.2% year-on-year.

However, in a comparison between September and October, the PPI index witnessed a slight decrease of 0.1%. This minor decline between the months highlights a nuanced fluctuation within the overall trend of declining PPI figures.

The latest statistics underscore the substantial influence of energy price fluctuations on Germany’s PPI, elucidating a scenario where the broader index remained relatively stable, excluding the considerable impact of energy costs.

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