German producer prices for industrial products decreased by 1.5 percent year-on-year in July 2025, according to data released Wednesday by the Federal Statistical Office (Destatis). This follows a decrease of 1.3 percent in June. Compared to the previous month, producer prices fell by 0.1 percent in July.
The primary driver of the year-on-year decline was lower energy prices. Intermediate goods also registered lower prices compared to the previous year. Conversely, consumer and capital goods saw price increases. Excluding energy, producer prices increased by 1.0 percent year-on-year in July, a decrease of 0.2 percent compared to June.
Energy prices in July were 6.8 percent lower compared to July 2024, but increased by 0.1 percent compared to June. The largest influence on the year-on-year energy price change came from declines in the price of natural gas distribution, which fell by 8.6 percent (-1.1 percent compared to June). Electricity prices decreased by 7.8 percent year-on-year (+0.9 percent compared to June), while district heating decreased by 2.1 percent (+0.8 percent compared to June). Mineral oil products fell by 7.9 percent (+0.4 percent compared to June). Light heating oil was 5.7 percent cheaper than a year prior (-1.0 percent compared to June) and fuel prices were 3.9 percent lower (+0.7 percent compared to June).
Capital goods prices were 1.8 percent higher year-on-year (+0.1 percent compared to June). Machinery cost 1.8 percent more than in July 2024 (+0.1 percent compared to June). Prices for motor vehicles and parts increased by 0.9 percent compared to July 2024 (-0.1 percent compared to June).
Consumer goods were 3.5 percent more expensive in July than in July 2024 (-0.2 percent compared to June). Foodstuffs cost 4.1 percent more than in July 2024 (-0.4 percent compared to June). Notably, coffee prices rose by 38.4 percent (+1.6 percent compared to June) and beef prices increased by 38.0 percent (+1.5 percent compared to June). Butter was 11.8 percent more expensive than a year ago (+0.1 percent compared to June). However, sugar prices fell significantly, decreasing by 39.5 percent (+0.1 percent compared to June). Pork prices were 3.9 percent cheaper than a year ago (-5.0 percent compared to June).
Prices for finished goods were 1.9 percent higher in July than a year earlier (+0.2 percent compared to June). Intermediate goods prices, however, were 0.9 percent lower year-on-year and 0.3 percent lower than the previous month.
Basic chemicals were 2.6 percent cheaper than a year prior (-0.3 percent compared to June). Wheat flour cost 3.3 percent less than in July 2024 (-0.6 percent compared to June). Feed for livestock cost 0.6 percent less than a year earlier (-1.6 percent compared to June).
Metal prices fell by 2.2 percent year-on-year (-0.6 percent compared to June). Raw iron, steel and ferroalloys were 5.9 percent cheaper than in July 2024 (-0.5 percent compared to June). Copper and semi-finished products were 4.8 percent cheaper than a year earlier (-1.5 percent compared to June). Concrete steel prices were 0.7 percent lower compared to the previous year (-1.6 percent compared to June).
Price increases compared to July 2024 were observed in wood, as well as wood and cork products, with a rise of 4.8 percent (+0.2 percent compared to June). Spruce wood was 13.1 percent more expensive than in July 2024 (+0.9 percent compared to June), while deciduous wood was 0.9 percent cheaper than a year earlier (+0.3 percent compared to June).
Paper, cardboard and products made from them cost 1.4 percent more than in July 2024 (-0.1 percent compared to June). Glass and glassware were also 1.4 percent more expensive than a year earlier (+0.9 percent compared to June), with the prices of refined and worked flat glass 1.8 percent above the previous year’s level (+0.7 percent compared to June). Hollow glass, however, was 4.7 percent cheaper than in July 2024 (-0.5 percent compared to June).
