Wholesale prices in Germany fell by 4.1 percent year-on-year in September, the most in three years. Europe’s largest economy is set for another consecutive quarterly decline at the end of the year, according to analysts surveyed by Bloomberg.
Half a year of decline
Germany saw wholesale prices fall for the sixth month in a row. September’s decline was the most significant since May 2020, statisticians said. Compared with August, prices fell 0.2 percent.
Last year, German wholesale prices rose sharply, by more than 20 percent in some months. The decisive factor was the war in Ukraine, which continued to make energy and raw materials in particular, which had already been rising before the war, much more expensive. As in recent months, the current fall in prices is mainly due to the high comparative base.
The reduction in GDP
Germany’s gross domestic product (GDP) contracted by 0.2 percent in the third quarter and is likely to fall by another 0.1 percent by the end of the year, according to a survey of analysts surveyed by Bloomberg. Their forecasts suggest that a weak recovery will then come next year.
“Economic growth will be weak for many years because of several structural problems,” said an analyst at the Handelsblatt Research Institute in Düsseldorf. As a result, the German economy will contract this year and will face lackluster growth in the coming years, he added.
Source Czech Press Office
