Germany's producer price inflation fell sharply to 0.3 percent year-on-year in August 2019 from 1.1 percent in the previous month and missing market expectations of 0.6 percent. It was the lowest rate since November 2016, due to falls in cost of energy (-0.3 percent vs 2.1 percent in July) and intermediate goods (-0.9 percent vs -0.7 percent). Meanwhile, inflation was unchanged for non-durable consumer goods (at 1.7 percent), capital goods (1.5 percent), and durable consumer goods (at 1.3 percent). Excluding energy, producer inflation inched lower to 0.6 percent in August from 0.7 percent in July. On a monthly basis, producer prices declined by 0.5 percent in August, compared to forecasts of a 0.2 percent fall. Producer Prices Change in Germany averaged 2.04 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.
Producer Prices Change in Germany is expected to be 0.20 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 1.00 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.