Data published by the Federal Statistical Office (Destatis) showed that in June, producer prices rose by 0.1% after declining by 0.2% in May. This was the first increase in the last 7 months. Economists had expected prices to remain unchanged. In annual terms, producer prices fell by 1.3%, compared with a decline of 1.2% in May. This was the sharpest drop since September 2024. Consensus estimates also suggested a decline of 1.3%.
Destatis said that lower energy prices were the main reason for the year-on-year decline in producer prices. When energy prices are excluded, producer prices rose by 1.3% per year and by 0.1% compared with May. Energy prices fell by 6.4% compared to June 2024 and increased by 0.3% in monthly terms. Lower electricity prices had the biggest influence on the year-on-year rate of change for energy. Across all customer groups, electricity prices declined by 8.8% per year and by 0.3% compared with May. Mineral oil product prices were down 7.7% per annum, but increased by 0.9% m/m. Heating oil cost 6.4% less than a year earlier (+6.6% m/m), and motor fuel prices fell by 4.2% per annum (+1.2% m/m).
Intermediate goods prices fell by 0.4% per year and by 0.2% on a monthly basis. The prices of non-durable consumer goods increased by 3.6% per annum and by 0.4% m/m. Food was 4.4% more expensive than in June 2024 (+0.6% m/m). Durable consumer goods cost 1.7% more than a year earlier and rose by 0.2% on a monthly basis. Capital goods prices rose by 1.7% per year and remained unchanged compared with May.