Record fall in German producer prices points to ‘big drop’ in inflation
The price of goods produced by German companies has fallen at the fastest annual rate since records began in 1949, pointing to further falls in inflation in Europe’s largest economy.
Anna Titareva, an economist at Swiss bank UBS, forecast that German consumer price inflation would continue falling rapidly, dropping from 4.3 per cent in September to 3.3 per cent in October.
German energy producer prices dropped 35.3 per cent in the year to September. Prices of intermediate goods, such as metals, wood and fertiliser, also fell 4.2 per cent year on year. But German food producer prices rose 5.5 per cent and durable consumer goods prices rose 4.2 per cent. and the prices of many construction raw materials surged, such as a 23 per cent rise in cement prices.