Germany producer price index increased less than forecast in June

According to the report from Federal Statistical Office (Destatis), in June 2019 the index of producer prices for industrial products rose by 1.2% compared with the corresponding month of the preceding year. Economists had expected a 1.4% increase. In May 2019 the annual rate of change all over had been 1.9%. Compared with the preceding month May 2019 the overall index decreased by 0.4% in June 2019 (-0.1% in May 2019). Economists had expected a 0.2% decrease/

Energy prices, the development of which had the greatest impact on the growth of the overall index, rose by 2.2% (-1.4% compared to May 2019). On an annual basis electricity prices increased by 7.4% whereas prices of natural gas (distribution) decreased by 0.6% and prices of petroleum products by 2.0%. The overall index disregarding energy was 0.9% up on June 2018 and unchanged compared to May 2019.

Prices of non-durable consumer goods increased by 2.1% compared to June 2018 (+0.5% on May 2019). Food prices were up 2.6%. Prices of capital goods increased by 1.5%, prices of durable consumer goods were up 1.4%. Prices of intermediate goods decreased by 0.2% compared to June 2018 (-0.2% on May 2019).