German Producer Inflation Hits Over 3-Year High
2026-08-20 06:09
By
Chusnul Chotimah
1 min. read
Germany’s producer prices increased 3.0% year-on-year in July 2026, marking the fourth straight month of producer price growth and accelerating from June’s reading of 1.8% and surpassing market forecasts of 2.7%.
It was the fastest increase in producer prices since April 2023, mainly boosted by rises in intermediate goods (5.4% vs 5.1% in June), due to surges in metals, precious metals, copper, and semi-finished copper.
Meanwhile, energy prices rose 3.8% (vs 0.4%), lifted by petroleum, naphtha, heating oil, motor fuels, and natural gas, though falls in electricity partly offset the rise.
Capital goods climbed 2.3%, and durable consumer goods advanced 2.0%, reflecting higher prices for machinery and motor vehicles.
In contrast, non-durable consumer goods dropped 2.3%.
Excluding energy, producer prices increased 2.7%.
Monthly, prices rose 1.1%, rebounding from a 0.3% drop in June, exceeding market estimates for a milder 0.7% increase and marking the fastest pace in three months.