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.