İSTANBUL
Producer prices in Germany increased more than expected in July, recording their sharpest annual rise in more than three years, official data showed Thursday.
Prices of industrial products rose 3% from a year earlier, accelerating from a 1.8% increase in June and exceeding market expectations of a 2.7% gain, according to the Federal Statistical Office (Destatis).
The reading marked the fastest annual increase since April 2023.
On a monthly basis, producer prices jumped 1.1%, more than double the market forecast of 0.5%, after falling 0.3% in June.
Intermediate goods were the main driver of the annual increase, with prices rising 5.4%, largely due to higher costs for metals, precious metals and copper products.
Energy prices increased 3.8% year-on-year, supported by higher prices for petroleum products, heating oil, motor fuels and natural gas, while lower electricity prices limited the rise.
Prices rose 2.3% for capital goods and 2% for durable consumer goods. By contrast, prices for non-durable consumer goods declined 2.3%.
Excluding energy, producer prices were 2.7% higher than in July 2025.
Producer prices measure price developments at the factory gate and are considered an early indicator of future consumer inflation.
