Current: Wholesale prices rush strongly into deflation

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.

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