German PPI declines 0.9% YoY in April as energy prices fall

Germany's Producer Price Index (PPI) fell 0.6% MoM in April 2025, exceeding expectations of a 0.3% drop and following a 0.7% decrease in March. On an annual basis, PPI declined 0.9% YoY, worse than the anticipated 0.6% fall and down from the previous month's 0.2% decrease. The primary driver of the YoY decline was lower energy prices. However, prices for non-durable and durable consumer goods, capital goods, and intermediate goods increased compared to April 2024. Excluding energy, PPI rose 1.5% YoY and 0.4% MoM. The data suggests that while overall producer prices are declining, inflationary pressures persist in certain sectors. This mixed picture may complicate the European Central Bank's monetary policy decisions, as it balances the need to control inflation with supporting economic growth. Traders will closely monitor upcoming Eurozone inflation and GDP data for further insights into the economy's health and potential implications for the euro.