German producer prices unexpectedly fell by 4.2% MoM in October, the first month-on-month drop since May 2020 and the biggest monthly drop in PPI history, due mainly to a drop in prices for electricity and distributed natural gas, according to data released on Monday.
According to the office, electricity rates dropped 16.9% across all consumer categories compared to September 2022, while natural gas prices were down 9.0%.
The trend sparks hopes that inflation is gradually peaking: “Perhaps the first signal of cyclical price pressure easing,” said LBBW economist Jens-Oliver Niklasch.
In October, Germany’s consumer prices were 11.6% higher year on year, as compared to the rest of Europe.
