German September PPI surges 6.7% year-over-year, beating forecasts as energy costs jump

German producer prices rose 6.7% year-over-year in September, topping the 6.2% consensus forecast and marking the sharpest annual increase since March 2023. Month-over-month, the Producer Price Index jumped 1.9%, exceeding expectations of 1.5% and accelerating from 1.1% in August. The surge was primarily driven by a 5.8% monthly rise in energy costs. Excluding energy, prices increased 0.1% month-over-month and 3.2% annually. With consumer price inflation at 3.3%, the data exacerbates stagflation worries across Europe's largest economy and complicates European Central Bank policy.