Germany's Producer Price Index (PPI) for September fell more than expected, providing fresh evidence that inflationary pressures in the country may be easing.

According to official data reported Friday, the PPI dropped by 1.7% year-on-year, compared to market expectations of a 1.5% decline.

On a month-over-month basis, the index edged down 0.1%, slightly below expectations of no change.

The PPI measures the average change over time in the selling prices received by domestic producers for their output, and is often considered a leading indicator of consumer inflation. A continued decline suggests that cost pressures at the production level are softening, which could eventually translate into lower prices for consumers.

Germany, Europe’s largest economy, has been grappling with inflation driven by energy prices, supply chain disruptions, and broader geopolitical tensions. However, recent data points, including the latest PPI figures, indicate a potential cooling of these pressures.