Producer prices for industrial products decreased by 2.2 percent in August 2025 compared to August 2024. This follows a decline of 1.5 percent in July 2025 and a reduction of 1.3 percent in June 2025, according to data released by the Federal Statistical Office (Destatis). Month-on-month, producer prices fell by 0.5 percent in August 2025.
The primary driver of the year-over-year decline in producer prices was a significant drop in energy costs. Intermediate goods also registered lower prices compared to the same period last year. Conversely, investment goods, consumer goods and durable goods saw price increases year-over-year. Excluding energy, producer prices rose by 0.8 percent compared to August 2024, while they fell by 0.2 percent compared to July 2025.
Energy prices were 8.5 percent lower in August 2025 than in August 2024, with a further decrease of 1.0 percent compared to July 2025. The most significant contribution to this decline came from a drop in the price of distributed natural gas. Prices for natural gas decreased by 11.0 percent compared to August 2024 (a decrease of 0.7 percent compared to July 2025) across all customer groups.
Electricity prices were 10.8 percent lower than in August 2024 (a decrease of 1.4 percent compared to July 2025) and district heating costs decreased by 1.8 percent compared to the same period last year (+0.0 percent compared to July 2025). Mineral oil product prices fell by 7.3 percent compared to August 2024 (-1.9 percent compared to July 2025), with light heating oil decreasing by 7.5 percent and fuels by 2.5 percent.
Prices for investment goods rose by 1.8 percent compared to August 2024 (+0.1 percent compared to July 2025). Prices for machinery increased by 1.8 percent, while motor vehicles and parts saw a rise of 0.9 percent.
Consumer goods were 3.3 percent more expensive than in August 2024 (-0.1 percent compared to July 2025), driven by a 4.1 percent increase in food prices (-0.1 percent compared to July 2025). Significant increases were observed in the prices of coffee (+33.1 percent) and beef (+36.6 percent). Butter prices rose by 5.3 percent, while sugar prices decreased by 36.8 percent. Pork prices were 1.9 percent lower than in August 2024.
Prices for durable goods were 1.7 percent higher than in August 2024 (+0.0 percent compared to July 2025).
Prices for intermediate goods decreased by 1.0 percent compared to August 2024 and were down 0.4 percent compared to July 2025. Basic chemical products decreased by 2.2 percent (-0.2 percent compared to July 2025). Wheat flour prices were 3.5 percent lower than in August 2024 (-1.9 percent compared to July 2025) and feed for livestock decreased by 2.4 percent.
Metal prices declined by 1.1 percent compared to the same period last year (-0.3 percent compared to July 2025). Raw iron, steel and ferroalloys decreased by 6.4 percent. Prices for reinforcing bar were 2.7 percent lower. Copper and copper products, however, increased by 0.4 percent.
Increases in prices were observed for wood and wood products (+4.4 percent), with sawn timber increasing prices significantly, while prices for glass and glass products, refined and processed flat glass and paper, cardboard and goods made therefrom also saw increases. Hohlglas showed a price decrease.
