German inflation surprisingly accelerates in June on recovery in oil prices, likely to slowdown in H2 2020
Weak energy prices pull down Germany’s producer prices steeper than expected
Producer prices in Germany declined during the month of August, staying steeper than what markets had earlier anticipated, following weak global energy prices that kept the economy muted.
Germany’s producer prices fell 0.1 percent from July and dropped 1.6 percent from August last year, data released by the Federal Statistical Office showed Tuesday. Market participants had forecasted a monthly increase of 0.1 percent and an annual decline of 1.5 percent.
Excluding energy, producer prices fell 0.3 percent from the prior year and remained unchanged from July. Energy prices decreased 5.5 percent and that of intermediate goods declined 1.6 percent. In contrast, prices of non-durable consumer goods rose 0.7 percent and capital goods prices gained 0.6 percent. Likewise, durable consumer goods prices moved up 1.2 percent.
Further, month-on-month, producer prices slid 0.1 percent, which was the first fall in six months. Prices had increased 0.2 percent in July.
Meanwhile, the yield on the benchmark 10-year bond, which moves inversely to its price, fell 1-1/2 basis points to 0.002 percent, the yield on long-term 30-year note dipped 4 basis points to 0.596 percent and the yield on short-term 2-year bond slid ½ basis point to -0.654 percent, while the German stock index DAX Index traded 0.45 percent higher at 10,421 by 09:10 GMT.