German PPI-inflation under control
2022.12.20 04:06
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German PPI-inflation under control
Budrigannews.com – Maker cost expansion in Europe’s biggest economy fell strongly in November for the second consecutive month as a spike in energy costs loosened up further.
Destatis, the Federal Statistics Office, reported a 3.9% decrease from October, following a 4.2% decrease the month before. Those actions were taken three months after producer prices increased by a total of over 15% due to rising gas and electricity prices.
The figures indicate that the primary factors that contributed to this year’s rise in inflation are beginning to recede, which is good news for the European Central Bank. After reaching a high of 45.8%, it has now decreased to 28.2%. Producer price inflation slowed to 12.9% on the year, excluding energy costs, from 16.5% in May.
On the month, prices for both durable and fast-moving consumer goods increased by a meager 0.2 percent, while prices for basic inputs, excluding energy, decreased by 0.7 percent.
More German exporters optimistic about the future
However, energy costs have increased by two-thirds over the past year, and gas prices for business customers have more than doubled since November. That has resulted in significant price increases for goods like chemicals, particularly fertilizers and ammonia, which are up 65% and 75%, respectively.
As a result, the data continue to indicate that consumers and an industrial base struggling to maintain global competitiveness will have to bear the price changes this year over the coming months.
