German producer-price inflation cooled slightly as expected in July, but expensive energy and metals continued to stoke concern about price gains.
Annual inflation in prices at the factory gate was 6 per cent, after 6.1 per cent in June and 6.2 per cent in May, which was the strongest rate in almost 24 years, Federal Statistics Office data showed today.
On the month, producer prices in Europe's biggest economy advanced more than expected, rising 0.5 per cent compared with June, the office said.
"Price gains in the energy and metals components above all were the reason behind persistently high inflation rates," the Office said in a statement.
Energy prices increased by 1 per cent on the month and 15.6 per cent from July 2005, with mineral oil products rising 3.1 per cent from June and 11.3 per cent on the year, the data showed.
Prices for non-ferrous metals jumped 6.2 per cent on the month and 46.1 per cent from a year earlier. Lead, zinc and tin was up 84.9 per cent on the year, and copper and semi-finished copper gained 82.8 per cent.
Excluding energy, prices rose by 0.5 per cent compared with the previous month and 3.0 per cent on the year after June's monthly gain of 0.1 per cent and annual rise of 2.4 per cent.