German producer prices for industrial products increased by a 47-year high in September, driven mainly by the hike in energy during the month. EWG is flat on premarket.
- Producer prices climbed by 14.2% in September from the previous year, up from the 12.0% in August and the -1.0% the same month last year.
- The latest reading is the fastest pace of increase since prices increased by 14.5% during the first oil crisis in October 1974.
- Energy prices accounted for the biggest increase, up 32.6% compared with the same month last year and 8.0% from the previous month.
- The increase was due to the steep increase of natural gas (distribution), which gained 58.9% in September.
- Intermediate goods increased by 17.4% from the previous year, with the biggest growths seen in sawn timber which surged by 118%.
- Increases were also seen in prices of wooden packaging materials, secondary raw materials, and reinforcing steel in bars.
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