German producer prices fall most in 22 years

German producer prices fell by 3

German producer prices fell by 3.6 per cent year-on-year in May, the biggest annual decline since April 1987, the Federal Statistics Office said today.

Month-on-month, prices were unchanged. Producer prices had fallen on the month for every month since November.

A Reuters poll had forecast that prices would fall by 0.1 per cent month-on-month, and by 3.6 per cent year-on-year.

Excluding energy prices, prices fell by 0.3 per cent month-on-month and by 2.5 per cent on the year, the Office said.

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For the first time since reunification in 1990, German consumer prices were unchanged year-on-year in May and the Bundesbank has said they will likely turn negative this summer.

Reuters