The German producer price inflation eased to 2.7 percent year-on-year in December 2018 from 3.3 percent in the previous month and below market estimates of 2.9 percent. It was the lowest producer inflation since May, as prices slowed for energy (6.9 percent vs 8.9 percent in November); intermediate goods (1.9 percent vs 2.4 percent); and capital goods (1.4 percent vs 1.5 percent). Meanwhile, prices of durable consumer goods went up 1.9 percent, the same as in a month earlier; while those of non-durable consumer goods increased slightly faster (0.5 percent vs 0.4 percent). Excluding energy, producer inflation was unchanged at 1.6 percent. On a monthly basis, producer prices declined 0.4 percent in December, after a 0.1 percent gain in a month earlier. 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 2.30 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.