FRANKFURT (AP) -- German producer prices were down 7.6 percent on the year in September as energy costs sank and the economic downturn continued to affect industrial demand, official data showed Tuesday.
That compared with a 6.9 percent year-on-year decline in August. The Federal Statistical Office said producer prices -- the cost of raw materials and equipment for producers -- were down half a percent on the month in September.
The biggest factor in the fall was energy costs, which were down 16.4 percent on the year and 1.7 percent compared with August.
Metal prices were down 20 percent on the year, but rose 1.4 percent on the month.
Producer prices are seen as an important gauge of inflation trends before they trickle through to consumers.
German consumer prices were down 0.3 percent on the year in September, dropping into negative territory for the second time in 2009.