German May producer prices rise at slowest pace in over two years
2023.06.20 03:07
© Reuters. Shipping containers are seen onboard the Hapag-Lloyd container ship Chacabuco at the HHLA Container Terminal Altenwerder, on the River Elbe in Hamburg, Germany March 31, 2023. REUTERS/Phil Noble/FILE PHOTO
BERLIN (Reuters) -German producer prices rose at their slowest pace in more than two years in May, according to data released on Tuesday, in a further sign inflation in Europe’s largest economy is easing.
Producer prices of industrial products were up 1.0% compared with May 2022, the Federal Statistical Office reported. That is the smallest increase since January 2021’s rise of 0.9%.
A Reuters poll had indicated a rise of 1.7% year-on-year, after producer prices in April had risen 4.1% on the year.
Compared with the previous month, prices in May fell by 1.4%, versus a forecast 0.7% decline.
Producer prices are considered a precursor to the development of the cost of living. If producers raise or lower their prices, this usually has a delayed effect on private households, at least in part.
German inflation, harmonised to compare with other European Union countries, eased to its lowest level in more than a year in May, with consumer prices rising by a less-than-anticipated 6.3% on the year.
That marked the lowest montly rise since March 2022, in the aftermath of Russia’s invasion of Ukraine.
The office publishes more detailed data on its website.
