Producer prices in Germany fell year-on-year for the first time in more than two and a half years in July, pressured by falling energy prices, according to data from the German Federal Statistical Office, Destatis.
Producer prices in July of this year fell by six percent compared to the same month last year, when they had surged as a result of the war in Ukraine, the statistical office reported on Monday.
This marks the first year-on-year decline in producer prices in Germany since November 2020 and the sharpest drop since October 2009, during the financial crisis.
Energy prices in July plummeted by 19.3 percent compared to the same period last year, as electricity prices sharply decreased, with electricity becoming cheaper for all customer groups by 30 percent.
Excluding energy prices, producer prices in July were two percent higher than in the same month last year.
Compared to June of this year, producer prices in Germany were down by 1.1 percent, according to Destatis data.
The German producer price index, which measures changes in prices of goods sold by producers, is considered a key indicator of inflation, which slowed to 6.5 percent in July in the largest European economy.
The easing of inflationary pressures in Germany and across the eurozone followed a sharp increase in interest rates by the European Central Bank over the past year. However, this has led to a slowdown in economic growth and a weakening of demand, putting pressure on producer prices.
