Germany’s producer prices rose 1.8% year-on-year in June 2026, marking a third straight month of producer inflation but easing from May’s reading of 2.2%, which had been the strongest annual increase since May 2023. The strongest push came from intermediate goods, up 5.1%, as costs surged across metals, precious metals, copper, pig iron, steel, and ferroalloys. Energy prices rose 0.4%, lifted by petroleum, naphtha, heating oil, and motor fuels, though falls in natural gas and electricity partly offset the rise despite Middle East tensions. Capital goods gained 2.1%, and durable consumer goods added 1.8%, reflecting higher machinery and motor vehicles. In contrast, non-durable consumer goods fell 2.2%, due to cheaper food, particularly butter and pork. Excluding energy, producer prices increased 2.4%. On a monthly basis, prices fell 0.3%, reversing 0.3% growth in May and marking the first drop since February. It also exceeded market estimates for a milder 0.2% decline.