The prices of goods leaving Germany’s factory gates dropped more than expected in September, pulled lower by energy prices, official data showed Tuesday.
Producer prices in September fell 0.4% on the month and were 2.1% lower compared with the year-earlier period, federal statistical office Destatis said. That was the sharpest annual reduction since February. Economists polled by The Wall Street Journal forecast declines of 0.1% and 1.8%, respectively.
The data indicate there are hardly any upward pressures on consumer prices from the production side.
Energy prices once again had the largest effect on producer prices, Destatis said. Energy prices dropped 1.1% from August and were 6.1% lower compared with September last year.
Excluding energy prices, which can be volatile, producer prices in Europe’s largest economy slipped 0.1% in September from August and declined 0.6% from a year earlier.