The Federal Statistical Office has just published the German wholesale prices for the month of August. Compared to August 2018, they are down by 1.1%. In July it was already -0.1%. Prior to that, the year-on-year changes were +0.3%, 1.6%, 2.1% and so on. So: within a few months, wholesale prices have quickly gone into deflation. Last year, growth rates were often even above +3% (chart). This is currently the worst figure in three years! The weak wholesale prices for oil are banging right into the overall average. Here the statisticians in the wording:
In August 2019, the 6.1 % lower wholesale prices for petroleum products had the greatest impact on the overall development compared with the same month of the previous year. There were also sharp price declines year-on-year in the wholesale of used and residual materials (-10.0%), cereals, raw tobacco, seeds and animal feeds (-9.0%). Data processing equipment, peripheral equipment and software (-6.3%) also fell. In contrast, prices for live animals (+13.7%) and meat and meat products (+5.4%) in particular were higher at wholesale level than in August 2018.