The German producer price inflation fell to 1.9 percent year-on-year in May 2019 from 2.5 percent in the previous month and below market expectations of 2.1 percent. It was the lowest producer inflation since April last year, as prices rose at a slower pace for energy (4.5 percent vs 6.6 percent in April), durable consumer goods (1.4 percent vs 1.6 percent), and intermediate goods (0.5 percent vs 1 percent). Meantime, inflation accelerated for both non-durable consumer goods (1.8 percent vs 1.5 percent) and capital goods (1.6 percent vs 1.5 percent). Excluding energy, producer inflation also inched lower to 1.1 percent in May from 1.3 percent in April. On a monthly basis, producer prices edged down 0.1 percent in May, missing forecasts of a 0.2 percent gain. Producer Prices Change in Germany averaged 2.05 percent from 1950 until 2019, reaching an all time high of 22.40 percent in June of 1951 and a record low of -7.80 percent in July of 2009.
Producer Prices Change in Germany is expected to be 1.70 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Producer Prices Change in Germany to stand at 1.80 in 12 months time. In the long-term, the Germany Producer Prices Change is projected to trend around 2.00 percent in 2020, according to our econometric models.