Producer prices in Germany rose by 1.8 percent year-on-year in June, falling short of market expectations.

The Federal Statistical Office of Germany (Destatis) announced the Producer Price Index (PPI) data for June.

Accordingly, producer prices in the country increased by 1.8 percent in June compared to the same month last year. On a monthly basis, a 0.3 percent decline was recorded. Market expectations were for producer prices to rise by 1.9 percent year-on-year in June. In Germany, producer prices had recorded their fastest increase since May 2023, rising by 2.2 percent in May.

The main reason for the increase in June was a 5.1 percent rise in intermediate goods prices. Energy prices, on the other hand, increased by 0.4 percent year-on-year in June, while declining by 1.8 percent on a monthly basis.

Prices had seen a sharp increase after the energy crisis caused by the war in the Middle East. However, a decline was observed following the agreement reached between the US and Iran in June.

Excluding energy prices, the increase in producer prices in Germany was calculated at 2.4 percent year-on-year and 0.2 percent month-on-month.