German Producer Prices Fall by Most Since 2024

Producer prices in Germany fell 0.2% year-on-year in March 2026, easing from a 3.3% decline in February and marking the mildest drop since the current declining trend began in March last year. The softer annual decline came as energy prices fell at a slower pace (-3.2%), with lower natural gas and electricity costs partly offset by sharp increases in mineral oil products, reflecting the impact of tensions in the Middle East. Prices of non-durable consumer goods also declined (-0.3%), mainly due to cheaper food, particularly butter and pork. Meanwhile, prices for capital goods (1.9%) and durable consumer goods (1.9%) continued to rise, alongside intermediate goods (1.5%) primarily due to higher costs of metals and wood products. Excluding energy, producer prices rose 1.3%. On a monthly basis, producer prices jumped 2.5%, the largest increase since August 2022 and well above the expected 1.4% rise, driven primarily by a surge in energy costs (7.5%).

Producer prices in Germany declined 3.3% year-on-year February 2026, following a 3.0% drop in January, worse than market expectations of a 2.7% fall. This marked the twelfth consecutive month of falling producer prices and the fastest pace since April 2024, mainly due to a sharper decline in energy costs (-12.5% vs -11.8% in January), particularly natural gas (-14.3%) and electricity (-13.4%). Prices of non-durable consumer goods also continued to drop (-0.6% vs -0.2%), led by lower food costs (-1.9%), notably butter (-42.8%) and pork (-12.5%). Additionally, prices of capital goods (1.7% vs 1.8%), intermediate goods (1.1% vs 1.2%), and durable consumer goods (2.0% vs 2.1%) increased at slightly softer rates. Excluding energy, producer prices rose 1.0%, slowing from a 1.2% growth in the previous month. On a monthly basis, the PPI decreased 0.5%, after falling 0.6% in January, against market forecasts of a 0.3% rise.

Producer prices in Germany fell 3% year-on-year in January 2026, following a 2.5% decline in the previous month, exceeding market expectations of a 2.1% drop. The decline was mainly driven by lower energy costs, which fell 11.8%. Key contributors within the energy sector included natural gas (-13.7%), electricity (-11.2%), mineral oil products (-8%), and district heating (-0.3%). At the same time, non-durable goods edged down to 0.2%, weighed down by price decreases in food products (-1.3%). Excluding energy, producer prices increased 1.2%, after a 0.9% gain in December 2025. On the other hand, costs rose for capital goods (1.8%) and durable consumer goods (2.1%). On a monthly basis, producer prices dropped by 0.6% in January, following a 0.2% fall in the preceding period, falling short of market expectations of a 0.3% rise.