German Annual Producer Inflation Record High 37.2% in July with Natural Gas +163.8% and Electricity +125.4%

German producer prices surged in July over 5% as prices rose significantly for intermediate goods (+19.1%) and capital goods (+8.0%) as well as for durable and non-durable consumer goods (+10.9% and +16.2%, respectively). Inflation continues to run rampant throughout the world. Energy and food pricing pressures continue to elevate around the world. The effect is showing some variance by location. The sharp rise in electricity prices have been well documented and contributed to energy prices +14.7% more than doubling. Germany’s consumer inflation showed the highest reading since German reunification.

Germany Finance

Annual producer price inflation in Germany surged+37.2% vs +32.0% y/y expected in July of 2022 from 32.7% in June, although markets were expecting a smaller 32% reading. Inflation remains close to 40-year highs due to the war in Ukraine, Russian cuts in gas supply, marked price increases at the upstream stages of the economic process and interruptions in supply chains caused by the Covid-19 pandemic.

Germany July 22 preliminary PPI +7.6% vs +8.0% y/y expected

  • German July prelim PPI +37.2% vs +32.0% y/y expected
  • Prior +32.7%
  • PPI m/m +5.3% vs +0.6% m/m expected
  • Prior +0.6
German Monthly PPI
  • Energy prices remained the biggest upward contributor (105.0% vs. 86.1% in June), namely the distribution of natural gas (163.8%) and electricity (125.4%).
  • Excluding energy, producer prices climbed 14.6% from a year earlier.
  • Intermediate goods (19.1%), particularly metals (24.1%), fertilizers and nitrogen compounds (100.4 %), and cereal flour (48.9%);
  • Non-durable consumer goods (16.2%), such as food (21.1%); durable consumer goods (10.9%); and capital goods (8%), the biggest increase since at least September 1975.
Germany Producer Prices Annual Change

Latest data released by Destatis – 19 August 2022

Source: Destatis, TC, NSI

From The TradersCommunity Research Desk