German wholesale inflation hits three-year high as commodity prices jump
By Benjamin Chiou
Date: Thursday 20 Aug 2026
(Sharecast News) - Wholesale prices across Germany rose at their strongest annual rate in over three years in July, as commodity prices soared year-on-year, according to figures from the federal statistical office on Thursday.
The producer price index increased by 1.1% last month, following a 0.3% decline in June, Destatis reported. That equated to a 3.0% increase over last year, a big jump up from the 1.8% annual inflation rate recorded the month before.
This was ahead of the 2.7% print expected by a consensus of analysts and the highest wholesale inflation rate since April 2023.
The main reason was a 5.4% annual jump in intermediate goods prices, up from the 5.1% increase in June, as prices of copper, iron, steel, ferro-alloys and chemicals jumped year-on-year.
Energy prices were also up 3.8% year-on-year in July, with mineral oil products 31.4% more expensive due to the supply disruptions caused by conflict across Iran and the Middle East.
In particular, the price of naphtha - a raw material used for making plastics and a blending agent for gasoline - surged 34.6%, while motor fuel prices rose 29.4% and heating oil prices soared 52.0%.
Excluding energy prices, core PPI was 2.7% higher than in July 2025, accelerating from the 2.4% rate recorded in June.
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