Germany's producer price inflation inched lower to 1.1 percent year-on-year in July 2019 from 1.2 percent in the previous month, slightly above market expectations of 1.0 percent. It was the lowest producer inflation since December 2016, as cost rose at a softer pace for energy (2.1 percent vs 2.2 percent in June), durable consumer goods (1.3 percent vs 1.4 percent) and non-durable consumer goods (1.7 percent vs 2.1 percent). In addition, intermediate goods prices declined further (-0.7 percent vs -0.2 percent) while capital goods inflation was flat at 1.5 percent. Excluding energy, producer inflation also fell to 0.7 percent in July from 0.9 percent in June. On a monthly basis, producer prices rose by 0.1 percent in July, beating estimates of a flat reading. Producer Prices Change in Germany averaged 2.04 percent from 1950 until 2019, reaching an all time high of 22.40 percent in June of 1951 and a record low of -7.80 percent in July of 2009.
Producer Prices Change in Germany is expected to be 1.20 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Producer Prices Change in Germany to stand at 1.50 in 12 months time. In the long-term, the Germany Producer Prices Change is projected to trend around 1.90 percent in 2020, according to our econometric models.