The German producer price inflation edged up to 3.3 percent year-on-year in October 2018 from 3.2 percent a month earlier and in line with market consensus. It was the highest rate since April 2017, with upward pressure coming from all components: energy (9.4 percent vs 8.5 percent in September), in particular petroleum products (19.2 percent vs 18.5 percent), natural gas (9.2 percent vs 7 percent), and electricity (9.1 percent vs 9 percent); intermediate goods (2.3 percent vs 2.5 percent); durable consumer goods (1.7 percent, the same as in September); capital goods (1.4 percent, the same as in September); and non-durable consumer goods (0.2 percent vs flat reading). Excluding energy, producer inflation was unchanged at 1.6 percent. On a monthly basis, producer prices went up 0.3 percent in October, after a 0.5 percent gain in September. Producer Prices Change in Germany averaged 2.04 percent from 1950 until 2018, 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 2.20 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 2.40 in 12 months time. In the long-term, the Germany Producer Prices Change is projected to trend around 2.30 percent in 2020, according to our econometric models.