2023.03.2008:12:00UTC+00Germany Producer Price Inflation Eases To 15.8%, Lowest Since Sep 2021

Germany's producer price inflation eased for the fifth straight month in February to reach its lowest level in nearly one-and-a-half years amid a continued slowdown in energy prices, preliminary data from Destatis showed on Monday.

The producer price index, or PPI, climbed 15.8 percent year-over-year in February, which was slower than the 17.6 percent rise in January. Economists had forecast the price growth to ease to 14.5 percent.

Further, the latest inflation rate was the weakest since September 2021, when prices had risen 14.2 percent.

The overall strong inflation in February was still largely caused by a 27.6 percent jump in energy prices amid the price increases for natural gas in distribution. However, the rate of growth slowed considerably from 32.2 percent in January.

Excluding energy, producer prices rose 10.2 percent yearly in February, and they moved up 0.5 percent on a monthly basis.

Among other components of the producer price index, prices of non-durable consumer goods surged 17.9 percent, led by increased food costs.

Prices of durable goods were 10.5 percent higher compared to last year, and those for intermediated goods grew 8.6 percent due to the price developments in glass, glassware, and ceramics and manufactured stone.

Data showed that an upward price pressure for machinery drove a 7.7 percent rise in costs for capital goods.

On a monthly basis, producer prices decreased 0.3 percent in February versus an expected fall of 0.5 percent. In January, prices were down 1.2 percent.