Producer Prices in Germany
Germany - Producer Prices
Harmonized inflation moderates noticeably in July
German harmonized consumer prices rose 0.4% month-on-month in July, up from the 0.3% rise recorded in June. July’s uptick came on the back of higher prices for food and non-alcoholic beverages, pricier alcoholic beverages and tobacco while housing-related utilities also became more expensive. On the other hand, significantly cheaper clothing and footwear limited the overall price gain.
Harmonized inflation, meanwhile, dropped to 1.1% in July from 1.5% in the prior month, while average harmonized inflation edged down from 1.9% in June to 1.8% in July. Lastly, consumer price inflation rose from 1.6% in June to 1.7% in July and annual average consumer price inflation was stable at June’s 1.7% in July.
Regarding the inflation outlook, Carsten Brzeski, chief economist at ING Germany, noted that “with negative base effects from oil prices and the cooling economic outlook, German headline inflation will, in our view, continue to fluctuate between 1% and 1.5% in the coming months, adding to the argument for new ECB action in September.”
FocusEconomics Consensus Forecast panelists expect harmonized inflation to average 1.5% in 2019, which is unchanged from last month’s forecast. For 2020, our panel sees average inflation at 1.6%. This is largely in line with the Bundesbank projections of June 2019. While the Bundesbank kept its forecast for harmonized inflation in 2019 unchanged at 1.4%, it revised down its inflation expectation for next year to 1.5% from 1.8% in December 2018.
Germany - Producer Prices Data
|Inflation (PPI, annual variation in %)||-0.1||-1.0||-1.9||-1.6||2.7|
5 years of economic forecasts for more than 30 economic indicators.
Germany Producer Prices Chart
Source: German Central Bank and FocusEconomics calculations.
|Bond Yield||-0.48||0.41 %||Jul 31|
|Exchange Rate||1.11||0.65 %||Jul 31|
|Stock Market||12,189||-0.41 %||Jul 31|
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August 22, 2019
Leading indicators suggest momentum in the Eurozone’s largest economy remained weak in August, amid divergent dynamics in the services and manufacturing sectors.
August 14, 2019
Preliminary data released by Germany’s Statistical Institute showed that the economy contracted 0.1% on a seasonally- and calendar-adjusted quarter-on-quarter basis in the second quarter, contrasting the 0.4% expansion logged in the first quarter.
August 13, 2019
German harmonized consumer prices rose 0.4% month-on-month in July, up from the 0.3% rise recorded in June.
August 9, 2019
German trade data brought no reprieve in June; exports fell 0.1% month-on-month on a calendar- and seasonally-adjusted basis in June, contrasting the upwardly revised 1.3% expansion in May (previously reported: +1.1% month-on-month).
August 7, 2019
Industrial production tanked in June as output fell 1.5% month-on-month in seasonally- and calendar-adjusted terms, contrasting the revised meager 0.1% expansion in May (previously reported: +0.3% month-on-month).