German July Wholesale Price Inflation is almost 10%

The Federal Statistical Office announced on Monday that the wholesale prices rose 9.9% year-on-year in July, recording the fastest growth since November 1981, when prices rose 10%.

 July's annual growth was much faster
than 8.9% reported in June and 9% expected by economists.

Month-on-month, the index of selling prices in wholesale trade
rose 1.4% in July, faster than 0.9% in June and matched May's
increase. Economists had expected the monthly growth to ease to 0.5%
in July.
The statistical office noted that the oil products
surged 30.8% compared with July 2007. On a monthly basis, fuel
product prices climbed 6.2%. Further, iron, steel, non-ferrous metals
and semi-finished products prices were 15.7% higher than the prior
year, while cost of office machinery and equipments declined 11.1%.

Another survey report released earlier in the month showed that
the German overall output growth rate was the second-weakest in more
than three years. The Markit Final Germany Composite Output Index in
July slid to 52.1 from June's reading of 53. The final data confirmed
a slowdown in growth momentum in the private sector economy.