In July, producer prices in Germany fell by 6% year-on-year, which was the largest decline since 2009. According to Destatis, this decline followed a slight increase in June by 0.1%. Compared to June, prices fell by 1.1%, while in June they fell by 0.3%. Experts expected a drop of 5.1% YoY and a decrease of 0.2% in monthly terms. Analysts note that the main reason for the decline in prices is a sharp drop in the cost of energy by 19.3% compared to last year's values. Wholesale electricity prices have fallen by 30%. However, if energy carriers are not taken into account, producer prices actually increased by only 2% YoY. The cost of food increased by 9.2%, car prices increased by 5.1%. Intermediate goods became more expensive by 3.4%, production equipment – by 5.5%.
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