German producer prices fall sharply

(Sharecast News) - German producer prices fell sharply in December, office data showed on Friday, by more than expected. According to Destatis, the Federal Statistical Office, producer prices of industrial products were 8.6% lower year-on-year last month, compared to November's 7.9% decline.

Analysts had been expecting an 8% decline.

Month-on-month, producer prices dropped 1.2%, considerably larger that the 0.4% decline forecast.

On an annual average basis, prices were 2.4% lower in 2023 compared to 2022.

Destatis noted: "Lower energy prices continued to be the main reason for the year-on-year decline in producer prices.

"Intermediate goods were also less expensive than in December 2022, while higher prices had to be paid for consumer and capital goods."