Germany's producer price index rose more than forecast in July

According to the report from Federal Statistical Office, in July 2020 the index of producer prices for industrial products decreased by 1.7% compared with the corresponding month of the preceding year. In June the annual rate of change all over had been –1.8%, as reported by the Federal Statistical Office. Compared with the preceding month June the overall index rose by 0.2% in July 2020 (0.0% in June). Economists had expected a 0.1% increase.

Energy prices as a whole decreased by 5.8%. On an annual basis, prices of petroleum products were down 16.7%, prices of natural gas (distribution) decreased by 14.1%.

The overall index disregarding energy was 0.5% down on July 2019.

Prices of intermediate goods decreased by 2.3% compared to July 2019. Prices decreased especially regarding basic iron, steel and ferro-alloys (-9.0%) and basic chemicals (-7.0%). Prices of cereal flour were down 3.4%. By contrast, prices of precious metals increased by 22.3% compared to July 2019. Prices of ready-mixed concrete rose by 3.7%.

Prices of non-durable consumer goods increased by 0.5% compared to July. Food prices were up 0.1% on July 2019. The price of sugar increased by 18.4%. Prices of meat and poultry meat products rose by 3.5%. Butter prices were down 9.6% compared to July 2019.

Prices of capital goods increased by 1.1% compared to July 2019, durable consumer goods by 1.6%.

Compared to the June 2020 energy prices rose by 1.1%, prices of durable consumer goods by 0.1% while prices of capital goods were unchanged. Intermediate goods were 0.2% cheaper and non-durable consumer goods 0.3%.