German May producer prices rise at slowest pace in over two years
2:56 am Tuesday, June 20th, 2023
BERLIN (Reuters) -German producer prices rose at their slowest pace in more than two years in May, according to data released on Tuesday, in a further sign inflation in Europe’s largest economy is easing.
Producer prices of industrial products were up 1.0% compared with May 2022, the Federal Statistical Office reported. That is the smallest increase since January 2021’s rise of 0.9%.
A Reuters poll had indicated a rise of 1.7% year-on-year, after producer prices in April had risen 4.1% on the year.
Compared with the previous month, prices in May fell by 1.4%, versus a forecast 0.7% decline.
Producer prices are considered a precursor to the development of the cost of living. If producers raise or lower their prices, this usually has a delayed effect on private households, at least in part.
German inflation, harmonised to compare with other European Union countries, eased to its lowest level in more than a year in May, with consumer prices rising by a less-than-anticipated 6.3% on the year.
That marked the lowest montly rise since March 2022, in the aftermath of Russia’s invasion of Ukraine.
The office publishes more detailed data on its website.
(Reporting by Rene Wagner, Writing by Miranda Murray, Editing by Friederike Heine)
