Berlin, Germany (4E) – Producer prices in Germany declined more than projected in April, largely due to a significant fall in energy prices, according to data by statistics office Destatis released Tuesday.
Factory gate prices in Germany, Europe’s biggest economy, fell 0.1 percent from the previous month and dropped 0.9 percent from the previous year. The April figures are below expectations by analysts surveyed by The Wall Street Journal, who called for a flat rate from March and a drop of 0.8 percent from April last year.
Energy prices, which fell 3 percent from the year-earlier month, drove the decline. Stripping off energy prices, the producer price index (PPI) was just 0.2 percent lower in April from the previous year.
Lower producer prices reflect soft price pressures in the entire euro area. European statistics agency Eurostat said last week that consumer prices in the common currency bloc were up just 0.2 percent from March and 0.7 percent from April last year.