German producer prices nudge lower in June due to drop in energy prices
- June producer prices -0.3% vs -0.2% m/m expected
- Prior +0.3%
German producer prices eased in June as a result of a notable drop in energy prices for the most part. Excluding energy, producer prices were actually up 0.2% compared to May.
The breakdown shows that energy prices fell by 1.8% on the month, with prices for petroleum products dropping by 7.4% in June compared to the month before.
That being said, energy prices were still up 0.4% compared to June last year and that still helped to contribute to higher producer prices on an annual basis (+1.8%) in June this year. The higher annual estimate is also helped by higher prices for intermediate goods especially, which were seen up 5.1% in June compared to the same month last year. That is mostly due to higher metal prices (+11.8%) with prices for basic chemicals (+12.9%) also markedly higher compared to June last year.
The further breakdown on the month this time shows higher prices for intermediate goods (+0.7%) and also for capital goods (+0.2%). Meanwhile, prices for consumer goods were pretty much flat in June compared to May.
All in all, this continues to point to a further broadening in price pressures across the German economy as the Middle East conflict continues to rage on.
This article was written by Justin Low at investinglive.com.