Germany wholesale inflation slows

Germany’s wholesale prices rose 0.5% year-on-year in July 2025, easing from a 0.9% gain in June but marking the eighth straight month of annual increases, underscoring persistent cost pressures in key commodity and food markets.

The latest data point to a gradual moderation in wholesale inflation, though price gains remain concentrated in specific categories.

Food, beverages, and tobacco prices climbed 3.5%, driven by sharp increases in a range of agricultural and processed products. Notably, coffee, tea, cocoa, and spices surged 16.0%, sugar and bakery products rose 15.0%, dairy and edible fats were up 8.8%, meat and meat products increased 9.4%, live animals gained 8.4%, and milk, milk products, eggs, and oils advanced 7.3%.

Such sustained increases in food-related wholesale prices could feed through into consumer inflation in the coming months, particularly in the context of tight supply conditions and elevated global commodity costs.

In the industrial sector, prices for non-ferrous ores and metals jumped 17.6%, reflecting higher global demand for critical raw materials and the influence of supply constraints from key producing countries.

In contrast, several major energy and materials categories posted significant price declines, offering some offset to overall wholesale inflation. Solid fuels and mineral oil products fell 5.7%, waste and scrap dropped 9.0%, iron, steel, and ferrous semi-finished products were down 5.6%, and computers and related equipment decreased 4.8%.

On a monthly basis, wholesale prices edged down 0.1%, defying expectations for a 0.2% rise and reversing June’s modest increase. The monthly decline was driven in part by seasonal adjustments in agricultural goods and easing energy prices, which helped counter the sharp gains in metals and certain food categories.

Overall, the July figures highlight a wholesale price environment that is cooling on a headline basis but still reflects pockets of significant upward pressure — particularly in agricultural goods and metals — that could keep inflation risks elevated for producers and consumers alike.