Germany producer prices rise more than forecast in July

According to the report from Federal Statistical Office (Destatis), in July 2019 the index of producer prices for industrial products rose by 1.1% compared with the corresponding month of the preceding year. Economists had expected a 1.0% increase. In June 2019 the annual rate of change all over had been +1.2%. Compared with the preceding month June 2019 the overall index increased slightly by 0.1% in July 2019 (-0.4% in June 2019). 

The greatest impact on the growth of the overall index compared to July 2018 had the development of electricity prices. These were up 8.4% (+2.2% compared to June 2019). Energy prices as a whole rose by 2.1% (+0.7% compared to June 2019). On an annual basis prices of natural gas (distribution) decreased by 1.5% and prices of petroleum products by 2.0%. 

The overall index disregarding energy was 0.7% up on July 2018 and fell by 0.1% compared to June 2019.

Prices of non-durable consumer goods increased by 1.7% compared to July 2018 (-0.2% on June 2019). Food prices were up 2.2%.

Prices of capital goods increased by 1.5%, prices of durable consumer goods were up 1.3%.

Prices of intermediate goods decreased by 0.7% compared to July 2018 (-0.4% on June 2019). Prices decreased especially regarding electronic integrated circuits (-14%).