In August, producer prices in Germany fell by 12.6% compared to last year, according to the Federal Statistical Office of Germany Destatis. This was the most significant drop in the indicator in the entire history of observations since 1949. At the same time, it did not come as a surprise to analysts. In July, producer prices in the country decreased by 6%. Analysts note that the current decline in prices is largely due to the high base of comparison with last year's figures. In particular, the cost of energy fell by 31.9%, electricity fell by 43.2%. Intermediate goods also became less expensive, showing a drop of 4.1%. At the same time, metals fell by 10.8%, fertilizers and nitrogen – by 40.8%, and wood – by 27.2%. On the other hand, consumer goods have noticeably risen in price: non–durable household goods have risen in price by 6.9%, long-term – by 5.2%. Food products increased in price by 7.6%, and sugar jumped by 87.2%. In general, excluding energy, prices increased by 1.2%. Compared to the previous month, producer prices soared by 0.3% in August, surpassing analysts' forecasts of 0.2%. Excluding energy, the overall price level rose by 1.2%.
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