Germany producer inflation at 28-month low in May

ANKARA

Germany's producer prices increased at the slowest pace this May since January 2021, according to official figures released on Tuesday.

The annual producer inflation in Germany eased to 1% in May, from 4.1% in April, said the federal statistical bureau Destatis.

This was the eighth consecutive month of slowdown in Germany's producer inflation thanks to the decline in energy prices.

Energy prices as a whole fell 3.3% year-on-year in May, led by a 10.2% drop in electricity prices.

Prices of capital goods rose by 6.5% on the prior year, mainly driven by price increases in machinery (up 8.2%) and vehicles and parts (up 5.6%).

On a monthly basis, the producer prices fell 1.4% in May, shifting from a 0.3% growth in April.​​​​​​​