German consumer inflation eases, but wholesale prices surge
Consumer price inflation in Germany unexpectedly slowed in February, though wholesale price surged by their most in nearly two years, according to data from the Federal Statistical Office on Friday.
The EU-harmonised German consumer price index rose at an annual rate of 2.6% last month, according to Destatis's final estimates, revised down from the 2.8% initially reported two weeks ago.
That followed two straight readings of 2.8% over December and January.
Producer price inflation, however, picked up to 1.6% in February, up from 0.9% growth the month before and well above the 0.2% expected by the market.
This was the third straight month of wholesale price inflation after 19 consecutive months of deflation, and the highest reading since March 2023.
The marked acceleration was a result of a 4.4% year-on-year jump in the price of food, beverages and tobacco, with prices of coffee, tea, cocoa and spices up 43.8% and sugar, confectionary and bakery products 14.9% more expensive. Milk, milk products, eggs, edible fats and oils were also up 8.1% on last year.
The wholesale selling prices of non-ferrous ores, non-ferrous metals and non-ferrous semi-finished metal products also increased 29.7% compared with February 2024.