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- German producer price index growth accelerated in July
German producer price index growth accelerated in July
The Federal Statistical Office said that in July 2021, the index of producer prices for industrial products increased by 10.4% compared with July 2020. Economists had expected a 9.2% increase. This was the highest increase compared to the corresponding month of the preceding year since January 1975 (+10.5%), when prices rose strongly during the first oil crisis. Compared with the preceding month June 2021 the overall index rose by 1.9% in July 2021.
Mainly responsible for the increase of producer prices compared to July 2020 were the prices of intermediate products and of energy.
Prices of intermediate goods increased by 15.6% compared to July 2020. Compared to June 2021 these prices were up 2.3 %.
Energy prices as a whole increased by 20.4% compared to July 2020 and by 4.1 compared to June 2021. The price increase from July 2020 to July 2021 is mainly caused by a base effect resulting from the sharp drop in prices in spring 2020 in the course of the pandemic. The overall index disregarding energy was 7.4% up on July 2020.
Prices of durable consumer goods increased by 2.2% compared to July 2020 (+0.6% compared to June 2021), capital goods, such as machines and vehicles, by 1.8% (+0.5% compared to June 2021).
Prices of non-durable consumer goods increased by 1.8% compared to July 2020 and remained unchanged compared to June 2021.
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