Data published by the Federal Statistical Office (Destatis) showed that in July, producer prices rose 0.2%, as expected, after a similar increase in June. In annual terms, producer prices fell by 0.8%, slowing compared to June (-1.6%). Consensus estimates also suggested a 0.8% drop. It was the 12th fall in a row, but the weakest in this series.
Destatis said that lower energy prices continued to be the main reason for the year-on-year decline in producer prices. In July, energy prices fell by 4.1% per annum, but rose by 0.5% on a monthly basis. Lower prices for natural gas and electricity had the biggest influence on the year-on-year rate of change for energy. Across all customer groups, gas prices declined by 12.3% per annum and increased by 0.7% m/m. Electricity cost 9.2% less than in July 2023 across all customer groups. Compared with June, electricity prices increased by 0.7%.
Meanwhile, intermediate goods prices rose by 0.3% per year and by 0.2% compared to June. The prices of non-durable consumer goods increased by 0.6% per annum, but fell by 0.1% m/m. Food was slightly more expensive (+0.2%) than in July 2023. Durable consumer goods were 0.7% more expensive than in July 2023, but remained unchanged compared to June. Capital goods prices rose by 2.0% year on year and remained unchanged compared to June.
The data also showed that in July, the producer price index excluding energy increased by 0.9% per annum and increased by 0.1% compared to June.