Germany’s producer prices drop the least since July 2023

Producer prices in Germany registered the smallest year-on-year drop since July 2023 in March, the latest data by the Federal Statistical Office showed.

Prices went down 2.9% year-on-year in March, after a 4.1% slump in the prior month.

March has been the ninth straight month of producer deflation, as prices of natural gas plummeted 15.4% YoY, cost of electricity decreased 12.6% YoY and prices of mineral oil products went down 1% YoY.

On the other hand, prices of non-durable consumer goods edged up 0.3% YoY, those of durable consumer goods rose 1% YoY and prices of capital goods surged 2.8% YoY.

In month-over-month terms, producer prices in Germany edged up 0.2% in March, following a 0.4% decrease in February.

The EUR/GBP currency pair settled 0.58% higher at 0.8607 on Friday. For the week, the currency pair advanced 0.81% to register its best weekly performance since mid-December 2023.