Germany’s producer prices rise less than expected in November

By: MRT Desk

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Germany's producer prices rise less than expected in November

Germany’s producer price index declined in November for the second straight month, adding to signs that high inflation may be slowing in Europe’s largest economy as the cost of natural gas and electricity fell, data showed on Tuesday.

Producer prices of industrial products rose 28.2% from the same month a year earlier, compared with a 34.5% year-on-year rise in October, the Federal Statistics Office reported. Analysts had forecast a November reading of 30.6%.

Compared to October 2022, prices fell by 3.9%, below the average that foresaw a fall of 2.5%.

Energy prices were down 9.6% from the previous month, driven mainly by the easing of natural gas and electricity costs.

The Office provides more detailed data on its website.

“The bullish momentum in other goods also seems to be slowing,” said Ralph Solveen, head of economic analysis at Commerzbank.

“Consequently, there are hopes that the underlying upward pressure on consumer prices will also weaken soon,” he said, adding that inflation was likely to remain above 2% over the medium term.

The European Central Bank expects inflation in the 19-nation euro zone to exceed its 2% target until 2025.

In Germany, inflation will reach 7.2% in 2023, before falling to 4.1% in 2024, according to the Bundesbank’s latest projections.

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