German producer prices beat expectations in October

German producer prices dropped again in October in year-on-year terms; however, the pace of fall slowed down on deceleration in declines of energy prices. The index of producer prices for industrial produces dropped 0.4 percent year-on-year, according to Destatis. This is better than consensus expectations of a drop of 0.9 percent. In the previous month, the year-on-year rate had come in at -1.4 percent.

On a sequential basis, industrial producer prices grew 0.7 percent in October, as compared with the sequential rise of -0.2 percent in September and -0.1 percent in August. Consensus forecast was for a rise of 0.1 percent.

Energy prices, on a year-on-year basis, dropped 2.2 percent, whereas prices of intermediate goods dropped 0.7 percent. On the contrary, non-durable consumer goods prices increased 1.1 percent, whereas capital goods prices and durable consumer goods prices grew 0.6 percent and 1.2 percent, respectively.

Industrial producer prices, excluding energy was up 0.3 percent year-on-year, whereas it rose 0.1 percent in sequential terms.