BERLIN, Aug 19 - German industry producer prices rose more than expected in July as the onset of Europe's hottest summer for decades boosted electricity and flour prices, statistics office data showed on Tuesday. The Federal Statistics Office said producer prices rose 0.3 percent month-on-month, above a consensus forecast among analysts polled by for an unchanged reading. The range of forecasts was for a fall of 0.1 percent to an increase of 0.3 percent. On an annual basis, producer prices rose 1.9 percent, the statistics office said, driven by increases in electricity prices, which rose 8.2 percent, and for natural gas, which rose 15.0 percent.
Excluding energy, producer prices would have risen 0.3 percent year on year, compared with 0.4 percent in June, the statistics office said. German spot power prices rose sharply in July as dry weather in much of Europe boosted demand from air conditioners and tightened supply from nuclear and hydro power plants. Grains prices also rose as fears grew about poor harvests. The Federal Statistics Office said wheat flour, which rose 10.3 percent year-on-year, and rye, which rose 6.2 percent, were among products registered for above-average price increases//