Germany’s Federal Statistical Office Destatis shared the producer price index (PPI) data this morning. According to the statement, the annual producer inflation figure in the country was -6%, against the expectations of -5.1%.
According to historical data, the figures that emerged today made history as the largest annual PPI decline in the last 13 and a half years. The last major drop in German annual PPI figures came in December 2009, following the 2008 US mortgage crisis. During this period, the demand had dropped drastically.
Today, the tight monetary policy implemented by the states after the pandemic causes similar scenarios to occur. Apart from this situation, natural gas prices, which fell more than 80% compared to the previous year and the problems in the supply chain to a large extent ended, led to a reduction in the cost pressure on the producer price index.
According to official data, annual electricity prices in Germany fell by 30%. Overall energy inflation fell by 19.3%.
