Producer prices in Germany recorded their largest decline ever

Producer prices in Germany recorded their biggest year-on-year decline in August since data collection began in 1949, raising hopes that inflation will continue to ease in Europe’s largest economy.

The Federal Statistics Office reported on Wednesday that producer prices fell by 12.6 percent year-on-year.

Analysts polled by Reuters had expected a decline of 12.6 percent.

Due to the war in Ukraine, the increase in producer prices in August 2022 reached 45.8 percent year-on-year, the highest level ever since records began.

In July, producer prices fell 6 percent, their first decline in more than two-and-a-half years, as energy price pressures eased.

Data from the statistics office showed that compared to July, producer prices rose 0.3 percent in August.