Germany's producer inflation hits highest rate since mid-2023

The producer prices index in Germany was up by 1.7% in April on a yearly basis, hitting the highest level since May 2023, the federal statistical authority stated on Wednesday.

The increase in producer prices stemmed mainly from higher energy prices amid ongoing tensions in the Middle East, increasing 2% year-on-year in April, Destatis said.

A sharp increase in mineral oil prices was registered in April with 35.5%, the statistical office noted.

"By contrast, year-on-year price decreases were even recorded in the case of natural gas and electricity, due also to the persistently high price level since the start of the war in Ukraine," it added.

On a monthly basis, producer prices were up 1.2%.