Producer prices for services in Germany were 3.7 percent higher in the second quarter of 2026 compared to the second quarter of 2025. The last period with such a strong rise in producer prices for services was the fourth quarter of 2022, which saw a 4.5 percent increase year-on-year.
According to data released by the Federal Statistical Office (Destatis) on Friday, prices increased by 1.6 percent compared to the first quarter of 2026. While initial increases were driven by adjustments to rising costs at the beginning of the year, the sharp price hikes observed in the second quarter were significantly influenced by elevated energy prices stemming from the Iran conflict.
Within the services sector, the Transportation and Storage segment experienced the most vigorous growth year-on-year, rising by 6.2 percent. Freight transport via sea and coastal shipping showed the most dramatic increase, soaring by 20.7 percent against the second quarter of 2025 and 23.4 percent against the first quarter of 2026. The rise in fuel prices, linked to the Iran conflict and the blockade of the Strait of Hormuz, combined with surcharges levied by shipping companies, pushed up freight rates. Similarly, the prices for forwarding services grew by 6.2 percent compared to the prior year and 4.5 percent compared to the previous quarter, while road freight transport saw a rise of 5.8 percent year-on-year and 3.5 percent quarter-on-quarter, both due to steep increases in fuel costs. Costs in the warehousing and storage services area grew less steeply, up 3.2 percent year-on-year and 0.3 percent quarter-on-quarter; companies cited higher labor and energy costs, such as those for refrigerated warehouses, as contributing factors.
In the Information and Communication sector, prices increased by 1.5 percent compared to the prior year. Prices for wired telecommunications were 1.7 percent above the previous year’s levels, while wireless telecommunications saw a slightly milder increase of 1.2 percent. Compared to the second quarter of 2025, prices for data processing, hosting, and related services increased by 1.4 percent, and software and software license prices rose by 1.1 percent. In addition to general cost increases, surveyed companies also pointed to higher licensing fees as a cause.
Regarding Real Estate and Housing, prices increased by 2.5 percent year-on-year. Rents for residential and commercial properties rose by 1.7 percent, but the prices for real estate brokerage and property management experienced a much higher increase of 5.4 percent. Companies attributed this rise not only to climbing rents but also to increased administrative costs.
For freelance, scientific, and technical services, prices rose by 2.8 percent compared to the second quarter of 2025. The strongest gains were seen in accounting services (6.0 percent) and legal advice (4.1 percent). The introduction of new fee regulations mid-2025, which set higher charges for legal and tax professions, was noted as a contributing factor. Companies also cited general price increases at the start of the year, responding to rising general costs and wages. In another area-technical, physical, and chemical inspection services-prices increased by 2.8 percent year-on-year, with companies citing adjustments made at the beginning of the year due to higher energy, labor, and material costs.
Finally, in the Administrative and Support Services sector, prices rose by 3.5 percent year-on-year. Cleaning services saw a notably strong increase of 3.7 percent compared to the second quarter of 2025; rising collective bargaining wages at the beginning of the year were cited as a key reason. The temporary assignment of workers also increased, though less sharply, by 2.5 percent. The authority indicated that increased collective bargaining wages and the hike in general operating costs since the beginning of the year were frequently cited reasons for this rise.
