German Producer Inflation Hits Nearly 3-Year High

2026-05-20 06:10 By Chusnul Chotimah 1 min. read

Producer prices in Germany rose 1.7% year-on-year in April 2026, recovering from a 0.2% decline in March and marking the first increase since February last year.

The reading came in above market forecasts of 1.5% and represented the highest producer inflation since May 2023, mainly driven by higher intermediate goods prices (2.6%) and energy (2.0%), with a sharp rise in mineral oil prices (35.5%) due to the ongoing Middle East conflict.

Prices also rose for capital goods (2.0%), boosted by higher machinery costs, as well as motor vehicles, trailers, and semi-trailers, while durable consumer goods climbed 1.9%.

By contrast, prices for non-durables fell 1.0%, mainly due to cheaper food, particularly butter and pork.

Excluding energy, producer prices rose 1.6%.

On a monthly basis, producer prices climbed 1.2%, easing from a 2.5% rise in March, which was the largest increase since August 2022 but above the expected 1.0% gain, marking the second straight month of increase.



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German Producer Inflation Hits Nearly 3-Year High
Producer prices in Germany rose 1.7% year-on-year in April 2026, recovering from a 0.2% decline in March and marking the first increase since February last year. The reading came in above market forecasts of 1.5% and represented the highest producer inflation since May 2023, mainly driven by higher intermediate goods prices (2.6%) and energy (2.0%), with a sharp rise in mineral oil prices (35.5%) due to the ongoing Middle East conflict. Prices also rose for capital goods (2.0%), boosted by higher machinery costs, as well as motor vehicles, trailers, and semi-trailers, while durable consumer goods climbed 1.9%. By contrast, prices for non-durables fell 1.0%, mainly due to cheaper food, particularly butter and pork. Excluding energy, producer prices rose 1.6%. On a monthly basis, producer prices climbed 1.2%, easing from a 2.5% rise in March, which was the largest increase since August 2022 but above the expected 1.0% gain, marking the second straight month of increase.
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German Producer Prices Fall by Most Since 2024
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.
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