Germany Producer Prices Change

Producer prices in Germany decreased by 1.2% year-on-year in May 2025, following a 0.9% drop in the previous month, aligning with market expectations. This marked the third consecutive month of falling producer prices and the sharpest drop since September 2024. The overall decline was largely due to lower energy costs, which fell by 6.7%. Within the energy sector, notable contributors included electricity (-8.1%), natural gas (-7.1%), mineral oil product (-9.6%), heating oil (-10.2%), and motor fuel (-6.5%). Additionally, costs for intermediate goods edged down by 0.2%. By contrast, prices rose for non-durable consumer goods (3.6%), durable consumer goods (1.6%), and capital goods (1.9%). Excluding energy, producer prices increased by 1.3%, easing slightly from a 1.5% rise in the prior month. On a monthly basis, the PPI fell by 0.2% in May, slightly better than market forecasts of a 0.3% decrease and April’s 0.6% decline.