Germany producer inflation falls to 31-month low in June

Germany’s annual producer inflation fell to a 31-month low in June owing to falling energy and intermediate goods costs, according to official figures released on Thursday.

The producer prices of industrial products in Germany rose 0.1% year-on-year in June, the slowest pace since December 2020, said the federal statistical bureau Destatis.

The figure eased from a 1% annual rise in May.

Intermediate goods prices dropped 2.7% from the prior year in June, deeper than May’s 0.9% decrease due to lower metal prices.

Metal prices plunged 10.6% in June versus a 0.5% decline in the previous month.

Energy prices as a whole dipped 5% year-on-year in June led by lower electricity prices, compared to May’s slight fall of 0.2%

On the other hand, the prices of non-durable consumer goods surged 9.4% from the previous year in June due to an 11.1% hike in food prices.

On a monthly basis, producer prices dropped 0.3% in June, after a 1.4% decline in May.