German Service Prices Rise 2.2% in 2025, IT & Real Estate Surge, Shipping Falls 10.6%
Economy / Finance

German Service Prices Rise 2.2% in 2025, IT & Real Estate Surge, Shipping Falls 10.6%

The German Federal Statistical Office (Destatis) reported that producer prices for services rose on average by 2.2 % in 2025 compared with 2024. Within that period, prices in the fourth quarter increased by 2.1 % over the fourth quarter of 2024 and by 0.3 % over the third quarter of 2025.

“Transport and warehousing”
Overall, prices in this sector grew by 1.5 % in 2025 versus 3.8 % in 2024. Within the subsections, other postal, courier and express services saw a sharp rise of 4.9 % against 2024, while road freight prices edged up by 2.3 %. The main drivers were higher CO₂ levies and wage inflation at the start of the year. Compared with the previous decade, the rate of increase has weakened (2024 to 2023 growth was 6.0 %).

“Sea and coastal shipping”
Prices fell sharply by 10.6 % in this sector compared with the prior year, and by 14.3 % in the fourth quarter. Overcapacity in vessels and containers, combined with weak economic demand, led to lower freight rates. Consequently, sea‑freight logistics prices dropped 12.8 % against 2024, leading to a total decline of 1.5 % in freight services for the year, with the fourth quarter dropping 3.3 %.

“Information and communication”
The sector posted a modest 1.6 % rise in 2025. Software and software licensing prices increased by 2.3 %, and IT‑consulting and support services rose by 1.8 %. Prices for wired telecommunications went up 1.4 %, whereas wireless services fell slightly by 0.6 %. The increases are attributed to higher general operating costs and wage hikes at the start of the year.

“Real estate”
Producer prices for real estate grew 2.2 % in 2025. Rents for residential and commercial property rose 1.9 %, while brokerage and property‑management services surged 2.8 %. Firms cited overall cost pressures and contractual adjustments linked to benchmark price indices as key reasons.

“Professional, scientific and technical services”
This subsector saw a 2.5 % rise in 2025, slightly weaker than the previous year’s 2.7 % jump and the 4.1 % growth of 2023. The biggest increases were in accounting (+5.0 %) and legal advisory (+4.1 %). New fee schedules that became effective mid‑year raised charges for legal and tax professionals. Technical, physical and chemical testing services also rose 3.6 %, driven largely by higher costs in vehicle‑inspection services at the start of the year.

“Administrative and support services”
The strongest rise among support services was 3.3 % in 2025. Cleaning services jumped 4.9 %, largely due to tariff hikes earlier in the year, while prices remained stable when compared to the preceding quarter. Temporary staffing services increased by 3.5 %, attributed to rising operating costs and the relatively tight supply of qualified personnel.