June data shows a 0.3% monthly drop in German producer prices, driven by a 1.8% fall in energy costs, though annual inflation remains elevated at 1.8%.
German producer prices fell 0.3% month-over-month in June, slightly below the expected 0.2% decline, as energy prices dropped 1.8%. Excluding energy, prices rose 0.2% from May, signaling persistent underlying inflation pressures.
The decline in energy costs was led by a 7.4% drop in petroleum product prices, though energy prices remained 0.4% higher year-over-year. Intermediate goods prices rose 5.1% annually, driven by surging metal (+11.8%) and chemical (+12.9%) costs, while capital goods saw a modest 0.2% monthly increase.
Annual producer price inflation stood at 1.8% in June, supported by higher intermediate goods prices. Consumer goods prices remained flat month-over-month, reflecting mixed inflation trends amid ongoing geopolitical tensions.