German producer prices rose above expectations in September

German producer prices (PPI) rose by 6.7% in in twelve months to September from 4.6% in August and beat expectations for 6.3% increase, while monthly PPI was up by 1.9% from 1.1% previous month and above 1.5% consensus.

Rise in prices of goods sold by manufacturers was the fastest since March 2023 and reflects increased inflationary pressure, primarily driven by higher energy prices which grew by more than 14% in 2026.

The PPI report contributes to consumer prices and September’s higher than expected results indicate that inflation remains in an upward trajectory, fueled by strong rise in fuel prices that impacts all sectors of the economy.

Economists became more pessimistic and speculate that PPI index can rise to 10 in current circumstances, that further darkens the outlook, especially after recent report showed that German Consumer Price Index jumped to 3.3% in September from 2.9% in August and hit the highest since December 2023.