According to the report from the Federal Statistical Office (Destatis), wholesale prices fell by 0.2% in November, slowing compared to October (-0.7%) and recording the second monthly decline in a row. Economists had expected a 0.1% drop. In annual terms, wholesale prices fell by 3.6% after falling 4.2% in October. It marked the 8 consecutive period of decline. The decline is primarily due to a base effect originating from the large price increases in 2022 as a result of the war in Ukraine.
Destatis stated that the drop in prices in the wholesale of mineral oil products (-13.9% per annum) had the biggest impact on the overall development of wholesale prices. On a monthly basis, prices for mineral oil products fell by 1.0%. The drop in prices (in annual terms) was also recorded in the wholesale of grain, unmanufactured tobacco, seeds and animal feeds (-24.3%), chemical products (-20.9%), metals and metal ores (-12.8%), and waste and scrap (-10.0%). Meanwhile, prices rose for fruits and vegetables (+14.8%), confectionery and bakery products (+10.1%), beverages (+7.4%) and live animals (+7.2%).