Germany's producer prices fall further in May, matching estimates

By Mucahithan Avcioglu

ISTANBUL (AA) - Producer prices in Germany fell by 1.2% on an annual basis in May, matching market estimates, according to official data released on Friday.

The figure followed a drop of 0.9% in the previous month, Destatis data showed.

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

Energy prices in May fell by 6.7% year-on-year, while energy-excluded producer prices rose by 1.3%.

Intermediate goods were also less expensive in May compared to a year earlier, falling 0.2% on an annual basis.

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

Capital goods prices in May were 1.9% higher than a year earlier, non-durable consumer goods prices climbed 3.6%, and durable consumer goods prices went up 1.6%.

Meanwhile, producer prices dropped by 0.2% on a monthly basis in May, following a 0.6% decline in April.

The markets had estimated that the prices would fall by 0.3% on a monthly basis for the month.