German producer prices fall unexpectedly in September

Germany’s producer prices dropped more than expected in September 2016 on a year-on-year basis. According to Germany’s official statistics office, Destatis, the index of producer prices for industrial products dropped 1.4 percent year-on-year, as compared with the consensus projection of a decline of 1.2 percent. In August, producer prices had dropped 1.6 percent year-on-year.

On a sequential basis, producer prices dropped 0.2 percent in the month, as compared with August’s decline of 0.1 percent and July’s gain of 0.2 percent. Consensus expectations were for producer prices to grow 0.2 percent sequentially in September.

Again, energy prices kept the producer price index low in September. Energy prices dropped 5.2 percent year-on-year in the month, whereas intermediate goods dropped 1.2 percent. On the contrary, non-durable consumer goods prices were up 0.7 percent, while capital goods prices rose 0.6 percent in September. Prices of durable consumer goods increased 1.2 percent year-on-year.

The producer price index, excluding energy prices, dropped 0.1 percent year-on-year and rose 0.1 percent sequentially in September.