Pressure eases: Producer and import prices fall in May

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Producer and import prices (PPI) composite index was 109.1 percent in May. It fell 0.3 percent from April and May of the previous year, as the Federal Statistical Office announced on Thursday. The PPI last fell in March 2021.

However, producer prices continued to rise on their own in May, up 0.4 percent month on month and 2.0 percent year on year. The main reason for this was the high electricity prices. On the other hand, the decline in oil and natural gas prices caused the import price index to decrease (-1.8% compared to the previous month and -4.6% compared to the previous year). Metal, glass and plastic products also became cheaper.

The so-called composite index (PPI) of producer and import prices peaked at 6.9 percent in May and June 2022 and has fallen for most months since.

The PPI is considered a leading indicator for the development of consumer prices, because production costs are often reflected in consumer prices. However, it has significantly higher fluctuations and is much more volatile due to the high dependence on raw materials. (SDA)

Source :Blick