German producer prices rose 6.7% year-on-year in September, the fastest since March 2023, as energy jumped 14.9%. Excluding energy they rose just 0.1% on the month and food fell 4.1%, which suggests margins are absorbing the cost shock as the ECB weighs its next move.
Hedgeye’s Jonesy flags factory-gate inflation returning across major economies after Destatis posted Germany’s hottest PPI since March 2023, with energy still the main driver. Source
German producer prices rose 6.7% year-on-year in September, against a 6.3% forecast and 4.6% in August, according to Germany's Federal Statistical Office (Destatis). On the month the gain was 1.9% versus 1.5% expected. That is the fastest annual rate since March 2023 (7.5%), though still a fraction of the 45.8% peak of August 2022. Energy did most of the work. Prices there rose 14.9% year-on-year and 5.8% on the month, with mineral oil products up 51.3%, heating oil 91.8% and naphtha 53.8%. Destatis tied the moves to the conflict in Iran and the Middle East.
