Inflation Surge Shocks Markets
Economy / Finance

Inflation Surge Shocks Markets

Wholesale prices in Germany rose by 0.9 percent in June 2025 compared to June 2024, according to data released Friday by the Federal Statistical Office (Destatis). This represents an acceleration from the 0.4 percent increase observed in May 2025 and the 0.8 percent rise recorded in April 2025.

The index also showed a month-on-month increase, with wholesale prices climbing 0.2 percent in June 2025 compared to May 2025.

The primary driver of the overall increase in wholesale prices year-over-year was a significant rise in the cost of food and beverages, including tobacco products. Average prices in this category were 4.2 percent higher than in June 2024. Notably, prices for coffee, tea, cocoa and spices increased substantially at the wholesale level, jumping 26.2 percent. Sugar, confectionery and baked goods also experienced a marked price increase of 18.2 percent. Consumers paid notably more for dairy products, eggs, edible oils and fats, with prices up 8.8 percent compared to the same period last year.

A considerable increase was also seen in wholesale prices for non-ferrous ores, non-ferrous metals and semi-finished products, rising 20.5 percent year-over-year.

Conversely, a decrease in prices was observed in several categories. Wholesale prices for solid fuels and mineral oil products were 5.9 percent lower than in June 2024. Prices for recycled materials and waste also fell by 6.1 percent. Furthermore, iron, steel and related products saw a decline of 5.4 percent and prices for data processing and peripheral equipment were down 5.0 percent compared to June 2024.