EURO: German Producer Prices Drop Sharply
The German Wholesale price deflation accelerated more than expected as 3.3% printed in the April month and 2.9% decline in the March month. The Energy prices dropped to lowest levels as 8.2% as whole from Electricity 14% drop and Gas prices 18% Drop. Excluding Energy prices, PPI data is 0.60% lower than the last year.
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Germany’s wholesale price deflation accelerated more than expected in April, according to figures released by Destatis, the Federal Statistical Office, on Tuesday.
The producer price index fell at an annual rate of 3.3% last month, compared to a 2.9% decline in March. This marked the tenth consecutive month of falling prices and was steeper than the consensus forecast for a year-on-year fall of 3.2%.
The main driver of the overall wholesale price deflation continued to be lower energy prices, with costs falling 8.2%. Specifically, electricity and gas prices dropped by 14% and 18%, respectively.
When excluding energy, the producer price index showed a more modest decline, down just 0.6% compared to the previous year.
EURO: German Producer Prices Drop More Than Expected in April
The rate of deflation in German wholesale prices surged beyond forecasts, with a decrease of 3.3% recorded in April, following a 2.9% decline in March. This acceleration was particularly pronounced in energy prices, which plummeted to their lowest levels: electricity prices dropped by 14%, while gas prices fell by 18%, contributing to an overall 8.2% decrease. Excluding energy prices, the Producer Price Index (PPI) data shows a decrease of 0.60% compared to the previous year.
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German producer prices fell more than expected in April, primarily due to lower energy prices, the federal statistics office reported on Tuesday. The producer price index (PPI) decreased by 3.3% year-on-year, exceeding analysts’ expectations of a 3.1% decline, as polled by Reuters.
Energy prices dropped significantly, down 8.2% year-on-year in April, driven mainly by lower costs for natural gas and electricity, according to the statistics office. Excluding energy prices, the PPI was 0.6% lower than in April 2023.
In addition to the overall decline in producer prices, the cost of intermediate goods fell by 3.1%compared to April 2023. In contrast, prices for consumer and capital goods saw an increase, indicating a mixed trend in different sectors of the economy.
EURO: German Producer Prices Drop More Than Expected in April
German wholesale prices experienced a sharper-than-anticipated deflationary trend, with April witnessing a 3.3% decline following a 2.9% drop in March. Notably, energy prices saw a significant downturn, reaching their lowest levels: electricity prices fell by 14%, while gas prices plummeted by 18%, resulting in an overall 8.2% decrease. Excluding energy, the Producer Price Index (PPI) data indicates a 0.60% reduction compared to the previous year.
EURCHF is moving in Expanding channel and market has reached higher high area of the channel According to a report from the federal statistics office on Tuesday, German producer prices experienced a more significant decline in April than initially anticipated, primarily driven by reduced energy costs.
Compared to the previous year, producer prices dropped by 3.3%, surpassing the expectations of analysts surveyed by Reuters, who had predicted a 3.1% decrease.
The decline in energy prices was particularly notable, with a year-on-year decrease of 8.2% in April. This decrease was primarily attributed to lower prices for natural gas and electricity, as reported by the statistics office.
When excluding energy prices from the calculation, producer prices still showed a decline, albeit less pronounced, with a 0.6% decrease compared to April 2023.
In terms of goods categories, intermediate goods saw a notable decrease in prices, being 3.1% less expensive than in April of the previous year. Conversely, consumer and capital goods experienced higher prices during the same period.
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