• July producer prices +1.1% vs +0.7% m/m expected
• Prior -0.3%
• July producer prices +3.0% vs +2.7% y/y expected
• Prior +1.8%

German producer prices continue to move up again in July but owes much to another jump in energy prices. Of note, energy prices rose by 3.4% in July compared to the month before with prices for petroleum products in particular seen 6.6% higher than in June. That contributed much to the headline monthly estimate, as producer prices only rose by 0.1% if you strip out energy prices from the equation.

Looking at other key categories, prices for intermediate goods were seen 0.1% higher in July compared to June. Prices for capital goods also showed a slight increase on the month (+0.2%) and the same for consumer goods (+0.3%).

So, there is also a further pick up in prices at the broader level – not just in energy. And when looking to the annual estimate, the impact of the Middle East conflict is evident with producer prices now seen up by 3% compared to July last year.

This article was written by Justin Low at investinglive.com.