Rising in fuels puts pressure on German producer prices

The German Producer Price Index (PPI) fell in November compared to October, for the second consecutive month, due to the drop in energy prices.

The PPI rose 28.2% from the same month last year compared to October’s 34.5% increase, Germany’s Federal Statistical Office Destatis reported. Analysts had forecast a November reading of 30.6 percent.

This figure adds to signs that high inflation may be easing in Europe’s largest economy as the cost of natural gas and electricity fall, according to official data.

Compared to October this year, prices fell 3.9%, below the consensus that forecast a decline of 2.5%.

Energy prices fell 9.6% from the previous month, driven by lower costs for natural gas and electricity.

The main reason for the annual increase in industrial prices continues to be the evolution of energy costs,” the statistical office explained in a statement.

However, at an annual rate, energy costs are 65.8% higher than in November 2021, a high figure. “Energy prices have risen sharply compared to the previous year, but are currently falling,” Destatis said.

The energy product that registered the highest annual increase was natural gas, with 92.6%, while at the monthly rate it registered a decrease of 11.8 percent.

For its part, electricity cost 74.9% more than in November 2021.