German Producer Prices Drop In August

FRANKFURT (AP) -- German producer prices fell 7 percent in August from a year earlier, hitting levels not seen since September 2007, the Federal Statistical Office said Friday.

The Wiesbaden-based office said the price declines follow a near 8 percent decline in July and a 5 percent decline in June compared to the year-ago periods.

Prices for fuels contributed most to the drop, with energy prices more than 14 percent lower compared with August 2008.

Product components and material prices also fell. Metal prices were 21 percent lower in August, while prices for flour were 30 percent lower when compared with August 2008, the Statistical Office said.