FX.co ★ Germany Wholesale Inflation Slows

In July 2025, wholesale prices in Germany experienced a 0.5% year-on-year increase, softening from the 0.9% rise observed in June. Nonetheless, this marked the eighth straight month of growth in these prices. The food, beverages, and tobacco category saw a 3.5% increase, primarily driven by significant hikes in the prices of coffee, tea, cocoa, and spices, which jumped by 16.0%. Additionally, sugar and bakery products went up by 15.0%, dairy and edible fats by 8.8%, meat and meat products by 9.4%, live animals by 8.4%, and milk, milk products, eggs, and oils by 7.3%. Meanwhile, non-ferrous ores and metals recorded a notable surge of 17.6%. Conversely, there were considerable price reductions in sectors such as solid fuels and mineral oil products, which fell by 5.7%, waste and scrap, which declined by 9.0%, iron, steel, and ferrous semi-finished products, which decreased by 5.6%, and computers and related equipment, which dropped by 4.8%. On a month-to-month basis, wholesale prices experienced a slight decline of 0.1%, contradicting market forecasts that anticipated a 0.2% increase and reversing the growth seen in June.