Germany’s producer prices increased at an annual growth rate of 8.5 per cent in June over the same period last year, the Federal Statistical Office (Destatis) reported on Tuesday. This is the highest year-on-year increase since January 1982.

Compared to May, producer prices rose by 1.3 per cent in June. Excluding energy, producer prices advanced six per cent in June from the same period last year. Energy prices climbed 16.9 per cent year-on-year in June and were “mainly responsible” for the increase of producer prices, Destatis said. The year-on-year increase in energy prices was “mainly caused by a base effect resulting from the sharp drop in prices in spring 2020 in the course of the pandemic,” Destatis noted, adding that the CO2 pricing on some energy products introduced in Germany in January “also had a great impact”.

Meanwhile, eurozone banks expect demand for loans to firms and households to rise in the third quarter, the latest quarterly bank lending report by the European Central Bank showed on Tuesday. At the same time, banks foresee only a moderate tightening of credit standards or loan approval criteria, as both consumer and business confidence improve as economic activity gains traction. In the second quarter, banks reported a moderate increase demand for loans or drawing of credit lines by firms, the report showed.

Finally, house prices in Britain increased to a new record high for the fourth consecutive month in July, largely driven by the shortfall of property coming on the market, data from property website Rightmove showed on Monday. House prices increased by 5.7 per cent on a yearly basis in July, but slower than the 7.5 per cent increase registered in June. On a month-on-month basis, house prices gained 0.7 per cent, following a 0.8 per cent rise in June. The latest monthly growth was the largest at this time of year since July 2007.

Rightmove, which lists properties of 90 per cent of estate agents, said that the first six months of the year had been the busiest it had recorded since 2000, pushing up the average price of homes coming on to the market in England, Wales and Scotland to £338,447 – an increase of £21,389, or 6.7 per cent, since the beginning of 2021.

This report was compiled by Bank of Valletta for general information purposes only.