Germany's producer prices fall further in August, more than expected

By Mucahithan Avcioglu

ISTANBUL (AA) - Producer prices in Germany fell 2.2% on an annual basis in August, more than market forecasts, according to official data released by Destatis on Friday.

The figure followed a drop of 1.5% in the previous month, while the markets had expected the prices to fall 1.8%.

Lower energy prices were the main reason for the year-on-year decline in producer prices, Destatis said.

Energy prices in August fell 8.5% year-on-year, as natural gas (distribution) prices dropped 11%.

Intermediate goods were also less expensive last month compared to a year earlier, falling 1% on an annual basis.

Non-durable and durable consumer goods and capital goods were all more expensive than in the same month of the previous year.

Capital goods prices were 1.8% higher than a year earlier, non-durable consumer goods prices climbed 3.3%, and durable consumer goods prices went up 1.7%.

Meanwhile, producer prices dropped 0.5% on a monthly basis, following a 0.1% decline in July.

The markets had estimated that the prices would fall 0.1% on a monthly basis.