German June Producer Prices Increase on Oil, Raw Material Costs

Producer price inflation in Germany, Europe’s largest economy, held close to a 24-year high last month, led by higher energy and raw material costs.

Goods from plastics to newsprint were 6.1 percent more expensive in June than a year earlier, the Federal Statistics Office in Wiesbaden said in a statement today. Economists expected a gain of 5.9 percent, according to the median of 35 forecasts in a Bloomberg News survey. From May, prices rose 0.3 percent.

A 21 percent increase in the price of oil this year has boosted companies’ costs, increasing concern at the European Central Bank that they may feed through to consumer prices and lead workers to demand higher wages.
Bloomberg