BERLIN (Reuters) -German producer prices fell unexpectedly on the month in October, due primarily to a dip in prices for electricity and distributed natural gas, according to data released on Monday.
Producer prices of industrial products fell 4.2% on the month, the Federal Statistical Office reported, compared with economists’ expectations for a rise of 0.9%.
October marks the first month-on-month decrease in producer prices, considered a leading indicator for consumer prices, since May 2020.
Electricity prices were down 16.9% across all customer groups compared with September 2022, while prices of natural gas were down 9.0%, according to the office.
The development raises hopes that inflation is gradually peaking: “Perhaps the first signal of a certain cyclical easing of price pressure,” said LBBW economist Jens-Oliver Niklasch.
Germany’s consumer prices, harmonised to compare with other European countries, were 11.6% higher year-on-year in October.
Compared with October 2021, producer prices of industrial products rose 34.5% on the same month last year, signalling some relief after maintaining a record pace in August and September of 45.8%.
(Reporting by Rene Wagner, Miranda Murray and Paul Carrel; editing by Rachel More)
