GERMAN DATA
German July producer prices came in in line with expectations - both on a sequential and yearly comparison, falling 0.8% Y/Y (-1.6% prior) and increasing 0.2% M/M (+0.2% prior).
- Looking at the individual categories, energy base effects continue to taper off (-4.1% Y/Y, highest rate since June 2023 vs -5.9% prior). Note that despite the fading base effects, if energy prices stayed constant at their July level they would still not be positive until April 2025.
- Intermediate goods inflation printed in positive territory for the first time since April 2023 (+0.3% Y/Y vs -0.9% prior) in another sign that the trend of gradually lower goods contributions to overall headline CPI will fade off (as it has already started to). Intermediate goods prices are now almost 1.5% above their recent trough seen in November 2023.
- Investment goods inflation meanwhile continued to taper off, coming in at +2.0% Y/Y (vs +2.3% prior, lowest rate since August 2021).
- There was meanwhile no change since last month in the yearly rates of durable, non-durable, and consumption goods categories.
| German PPI Metrics | Jul % Y/Y | Jun % Y/Y |
| Investment Goods | 2.0% | 2.3% |
| Intermediate Goods | 0.3% | -0.9% |
| Durable Goods | 0.7% | 0.7% |
| Non-Durable Goods | 0.6% | 0.6% |
| Consumption Goods | 0.6% | 0.6% |
| Energy | -4.1% | -5.9% |
| Total | -0.8% | -1.6% |
MNI, Destatis
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