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Hot summer sends producer prices rising

The recent hot spell in Germany pushed producer prices up in July, the first rise in four months, on the back of climbing energy costs and the increased cost of food products such as flour, according to the Federal Statistics Office. The price of goods, from chemicals to gasoline, rose 0.3 per cent from June, exceeding economists' expectations of a 0.1 per cent increase. Energy prices went up 7.7 per cent compared with the corresponding month in 2002. The price of crude oil rose 2.2 per cent, bringing its total increase since late April to 24 percent as Iraq struggles to restore output. Electricity prices in Germany increased by 8.2 per cent and the cost of diesel fuel gained 3.8 per cent.