German wholesale prices rose 4.9% year-on-year in June, according to data reported by Handelsblatt.
While the annual rate of increase moderated compared to the previous months, the figures confirm that inflationary pressures remain entrenched in the German economy.
The primary driver cited is the ongoing conflict in the Middle East, which continues to disrupt supply chains and elevate input costs for businesses.
The persistence of high wholesale inflation complicates the outlook for consumer price stability in Europe.
As producer costs remain elevated, there is a heightened risk that these expenses will be passed on to consumers, potentially reigniting broader inflationary trends.
This development adds to growing concerns among policymakers and market participants about the durability of disinflationary progress in the eurozone.