German producer prices pick up in June: statistics

20th July 2010, Comments 0 comments

German producer prices, the cost of goods at the factory gate, gained 0.6 percent in June from May, a marked increase from the previous month, according to official data released on Tuesday.

On a 12-month basis, producer prices rose by 1.7 percent in June, the Destatis statistics office said, a sign of some inflationary pressure in the biggest European economy.

Analysts polled by Dow Jones Newswires had forecast a monthly increase of 0.2 percent and an annual rise of 1.2 percent.

In May, German producer prices had risen by 0.3 percent on the month and by 0.8 percent on the year.

Barclays Capital economists expected German industrial prices excluding energy to remain weak over the next few months but added: "We think that the upward trend in PPI (producer price index) measures should be watched very carefully."

© 2010 AFP

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