Germany's producer prices declined by 0.2 percent year-on-year in December 2019, after a 0.7 percent drop in the previous month and matching market estimates. This was the smallest fall in producer prices since September, as cost dropped less for both intermediate goods (-1.8 percent vs -2.1 percent) and energy (-2.4 percent vs -3.4 percent), mainly due to natural gas (-6.3%) and petroleum products (-3.4%). Meantime, prices rose further for durable (1.3 percent vs the same as in November), non-durable (3.6 percent vs 2.6 percent) and capital goods (1.4 percent, the same as in November). Excluding energy, producer inflation rose to 0.4 percent in December from 0.2 percent in November. Considering full year of 2019, producer prices went up 1.1 percent. On a monthly basis, producer prices rose 0.1 percent in December, after being flat in November. Producer Prices Change in Germany averaged 2.03 percent from 1950 until 2019, reaching an all time high of 22.40 percent in June of 1951 and a record low of -7.80 percent in July of 2009. source: Federal Statistical Office
Producer Prices Change in Germany is expected to be 0.60 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Producer Prices Change in Germany to stand at 1.20 in 12 months time. In the long-term, the Germany Producer Prices Change is projected to trend around 1.60 percent in 2020, according to our econometric models.