In an unexpected shift, German producer prices halted their previous declining trend in November, as reported by Destatis on Friday. During this period, producer prices experienced a modest increase of 0.1% year-on-year, countering a 1.1% decrease observed in the prior month. This development surprised economists who had anticipated a further decline of 0.3%.
Significantly, this was the first recorded price increase since June 2023, when prices had risen by 1.2%. The driving force behind November's uptick was largely due to a 1.9% rise in capital goods prices. Concurrently, the reduction in energy prices lessened, dropping by only 2.4% compared to a steeper 5.6% decrease in October.
Prices for consumer goods saw an increase of 2.4%, while those for durable consumer goods went up by 0.9%. The data also indicated a 0.4% growth in prices for intermediate goods. Excluding energy, producer prices rose 1.3% annually, although there was a slight 0.1% decline from the previous month.
On a month-to-month basis, there was a 0.5% rise in producer prices, following a 0.2% rebound in October.
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