Data published by the Federal Statistical Office (Destatis) showed that in February, producer prices fell by 0.4%, offsetting the January increase (+0.2%), and exceeding economists' forecasts (-0.1%). In annual terms, producer prices fell by 4.1% after declining by 4.4% in January. Consensus estimates suggested a 3.8% drop. It was the eighth straight month of decline.
Destatis said that lower energy prices continued to be the main reason for the year-on-year decline in producer prices. Intermediate goods were also less expensive than in February 2023, whereas consumer and capital goods were more expensive. In February, energy prices decreased by 10.1% per annum and by 1.2% on a monthly basis. Lower prices for natural gas and electricity had the biggest influence on the year-on-year rate of change for energy. Across all customer groups, gas prices declined by 17.7% per annum and by 1.3% mom. Electricity prices decreased by 16.8% compared to February 2023 and fell by 4% on a monthly basis. Meanwhile, intermediate goods prices were 3.8% lower in February 2024 than a year earlier, but they remained unchanged compared with the previous month. The prices of non-durable consumer goods increased by 0.2% per annum. This is the lowest increase in prices since April 2021. Non-durable consumer goods cost 0.1% more in February 2024 than in January 2024. Durable consumer goods were 1.5% more expensive in February 2024 than a year earlier. Compared with January 2024, these prices were up by 0.1%. Capital goods prices rose by 2.8% year on year and by 0.2% on a monthly basis.
The data also showed that in February, the producer price index excluding energy fell by 0.8% per annum and increased by 0.1% compared to January.