19.09.202506:08:53UTC+00German Producer Prices Fall the Most in 15 Months

In August 2025, Germany experienced a 2.2% year-on-year decline in producer prices, following a 1.5% decrease in June and surpassing market predictions of a 1.7% drop. This marked the sixth consecutive month of annual declines in producer prices and was the most pronounced drop since May 2024 when prices fell at the same rate. The primary factor contributing to this overall decrease was the reduction in energy costs, which fell by 8.5%. Within the energy sector, notable decreases were observed in natural gas (-11.0%), electricity (-10.8%), heating oil (-7.5%), mineral oil products (-7.3%), and motor fuel (-2.5%). Prices for intermediate goods also saw a decrease of 1.0%. On the other hand, price increases were noted in non-durable consumer goods (3.3%), durable consumer goods (1.7%), and capital goods (1.8%). Excluding the energy sector, producer prices rose by 0.8%, following a 1.0% increase in July. On a monthly basis, the producer price index dropped by 0.5% in August, after a 0.1% decrease in July, marking a steeper decline than the anticipated 0.1% and the most significant monthly reduction in four months.