German Producer Inflation Hits 3-1/2-Year High

Germany’s producer prices increased 6.7% year-on-year in September 2026, marking the sixth straight month of producer price growth and accelerating from August’s reading of 4.6%. It was the fastest increase in producer prices since March 2023, mainly driven by rising energy prices (14.9% vs. 8.3% in August), reflecting higher prices for mineral oil, naphtha, heating oil, and motor fuels. Meanwhile, prices for intermediate goods accelerated to 6.4% from 6.1% in August, driven by sharp increases in prices for metals, copper, and semi-finished copper products. Capital goods prices rose 2.4%, reflecting higher prices for machinery and motor vehicles, while durable consumer goods advanced 2.2%. In contrast, non-durable consumer goods prices dropped 1.8%. Excluding energy, producer prices rose 3.2%. On a monthly basis, prices climbed 1.9%, following a 1.1% rise in August, marking the fastest pace in six months and exceeding market estimates of a 0.8% gain.

Germany’s producer prices advanced 4.6% year-on-year in August 2026, marking the fifth straight month of producer price growth and accelerating from July’s reading of 3.0% while surpassing market forecasts of 4.1%. It was the fastest increase in producer prices since April 2023, mainly boosted by rises in energy prices (8.3% vs 3.8% in July), driven by higher prices for mineral oil, naphtha, heating oil, and motor fuels. Meanwhile, prices for intermediate goods accelerated to 6.1% from 5.4% in July, due to surges in prices for metals, precious metals, copper, and semi-finished copper. Capital goods were up 2.4%, reflecting higher prices for machinery and motor vehicles, while durable consumer goods climbed 2.1%. Conversely, non-durable consumer goods fell 2.0%. Excluding energy, producer prices rose 3.1%. Monthly, prices rose 1.1%, the same pace as in July and still the fastest pace in three months, exceeding market estimates for a milder 0.4% increase.

Germany’s producer prices increased 3.0% year-on-year in July 2026, marking the fourth straight month of producer price growth and accelerating from June’s reading of 1.8% and surpassing market forecasts of 2.7%. It was the fastest increase in producer prices since April 2023, mainly boosted by rises in intermediate goods (5.4% vs 5.1% in June), due to surges in metals, precious metals, copper, and semi-finished copper. Meanwhile, energy prices rose 3.8% (vs 0.4%), lifted by petroleum, naphtha, heating oil, motor fuels, and natural gas, though falls in electricity partly offset the rise. Capital goods climbed 2.3%, and durable consumer goods advanced 2.0%, reflecting higher prices for machinery and motor vehicles. In contrast, non-durable consumer goods dropped 2.3%. Excluding energy, producer prices increased 2.7%. Monthly, prices rose 1.1%, rebounding from a 0.3% drop in June, exceeding market estimates for a milder 0.7% increase and marking the fastest pace in three months.