German Producer Prices Fall 1.5% in July as Trade Surpluses Erode

Producer prices in Germany fell 1.5% year-on-year in July, a steeper decline than the 1.3% drop analysts had expected, the Federal Statistics Office said. On the month, prices slipped 0.1% after a marginal rise in June, underscoring persistent disinflationary pressure in Europe’s largest economy. Across the wider bloc, the Eurozone recorded an unadjusted trade surplus of €7.0 billion in June, roughly half the market consensus of €13 billion and down from €16.2 billion a month earlier. Separately, the region’s current account surplus widened to €35.8 billion, equivalent to about 2.0% of GDP, supported by stronger primary income flows. Germany’s external position continues to weaken. The national trade surplus shrank to €104 billion in the first half of 2025, 22.2% lower than a year earlier, as exports slipped 0.1% while imports rose 4.4%. Shipments to the United States fell almost 13% over the period, although Berlin still booked a positive bilateral balance of €30.2 billion amid heightened tariff tensions.