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Germany Wholesale Prices Surge 6.3% YoY in April on Middle East Petroleum Shock

Germany's wholesale prices jumped 6.3% y/y in April, with petroleum surging 37.3% y/y, as Middle East conflicts fuel energy inflation (May 13). The period opened with Bundesbank noting €183 billion in bank excess capital but weak lending amid Iran war uncertainties and firm cash hoarding (May 7), followed by ING's alert on deepening industrial slump and recession risks from high energy costs (May 8). Property prices rose 2.2% in Q1 despite risks (May 11), while May 12 confirmed CPI at +2.9% y/y (energy +10.1%, core +2.3%), ZEW sentiment rebounded to -10.2, and 61% of German firms in China planned investments.

Category

Germany 40

Sentiment

Bearish

Event

Institutional outlook

Reading time

1 min