German Wholesale Prices Drop 0.7% in May

German Wholesale Prices Drop 0.7% in May

Germany's wholesale price index for May 2024 saw a 0.7% decline compared to the same period in 2023, according to the Federal Statistical Office (Destatis). This follows previous year-on-year declines of 1.8% in April and 2.6% in March. The primary driver of this decrease was significantly lower prices for chemical products, which saw a reduction of 13.9%. Additionally, wholesale prices for iron, steel, and ferrous metals also contributed to the decline.

Despite the annual decrease, wholesale prices in May 2024 rose slightly by 0.1% compared to April 2024. Factors contributing to this minor increase include higher prices for grain, unmanufactured tobacco, seeds, and animal feeds, with animal feed prices rising by 3.4%. This slight monthly uptick could indicate an improving demand environment, which may impact future inflation trends and influence decisions by the European Central Bank regarding interest rates.

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