German producer prices rise less than expected in November
4:23 am Tuesday, December 20th, 2022
BERLIN (Reuters) -Germany’s producer price index eased in November for the second month in a row, adding to signs that high inflation could be waning in Europe’s largest economy as the cost of natural gas and electricity fell, according to data released on Tuesday.
Producer prices of industrial products rose 28.2% on the same month last year compared with a 34.5% year-on-year rise in October, the Federal Statistical Office reported. Analysts had forecast a November reading of 30.6%.
Compared with October 2022, prices fell 3.9%, which was below consensus for a drop of 2.5%.
Energy prices were down 9.6% on the previous month, driven mainly by easing costs for natural gas and electricity.
The office offers more detailed data on its website.
“The upward momentum for other goods also appears to be slowing,” said Ralph Solveen, head of economic research at Commerzbank.
“Consequently, there is hope that the underlying upward pressure on consumer prices will also weaken soon,” he said, while adding that inflation was likely to remain above 2% in the medium term.
The European Central Bank sees inflation in the 19-country euro zone above its 2% target through 2025.
Inflation in Germany is expected to reach 7.2% in 2023 before easing to 4.1% in 2024, according to the Bundesbank’s latest projections.
(Reporting by Rachel More; Editing by Miranda Murray and Emelia Sithole-Matarise)
