Producer Prices Climb in April, Driven by Energy and Metal Costs
Economy / Finance

Producer Prices Climb in April, Driven by Energy and Metal Costs

Producer prices for manufactured goods were 1.7 percent higher in April 2026 compared to April 2025. According to data released by the Federal Statistical Office (Destatis) on Wednesday, this increase is higher than the rise recorded in May 2023 (+2.5 percent). In comparison to the previous month, producer prices rose by 1.2 percent in April.

Destatis attributes the year-on-year rise in producer prices to increased costs of intermediate goods, alongside rising energy prices.

Investment goods and consumer goods were also more expensive than a year ago. In contrast, consumer goods were cheaper than in April 2025. When energy costs are excluded, producer prices rose by 1.6 percent in April 2026 compared to the previous year, while they increased by 0.7 percent from March 2026.

In April 2026, energy was 2.0 percent more expensive than the previous year, and energy prices rose by 2.4 percent compared to March 2026. Due to ongoing fighting in Iran and the Middle East, mineral oil prices saw a particularly sharp increase in April 2026 (+35.5 percent versus April 2025, and +10.7 percent versus March 2026). Conversely, natural gas and electricity rates saw price decreases compared to the previous year, partly attributed to the still high price levels since the start of the war in Ukraine.

For mineral oil products, light heating oil cost 57.6 percent more than in April 2025 but was 1.6 percent less than in March 2026. Crude gasoline (naphtha) cost 47.4 percent more than a year ago and 19.9 percent more than in March 2026. Overall fuel prices rose by 34.0 percent from the previous year and 2.2 percent from March 2026.

Distributed natural gas cost 3.1 percent less across all consumer groups compared to the previous year, but rose by 1.6 percent from March 2026. Electricity prices fell by 4.7 percent compared to April 2025, and also fell by 2.2 percent from the previous month, March 2026. Hot water was 0.6 percent cheaper than the previous year.

The prices for capital goods were 2.0 percent higher in April 2026 compared to April 2025 (+0.3 percent compared to March 2026). Machines cost 1.9 percent more, and prices for automobiles and vehicle parts rose by 1.3 percent versus April 2025. Consumer goods, however, were 1.9 percent more expensive in April 2026 than the previous year (+0.2 percent compared to March 2026).

In contrast, consumer goods produced and sold in Germany cost 1.0 percent less than the previous year, though this represented a 0.2 percent increase from March 2026. Overall food prices fell by 2.5 percent, compared to an increase of 0.2 percent from March 2026. Butter (-38.8 percent) and pork (-11.0 percent) were noticeably cheaper than in April 2025. Compared to March 2026, pork prices rose by 3.0 percent, while beef was 9.0 percent more expensive than the previous year.

Intermediate goods prices rose by 2.6 percent in April 2026 compared to April 2025, and increased by 1.2 percent from March 2026, statisticians noted. The primary drivers for the price increase compared to April 2025 were higher metal prices (+9.1 percent). In particular, precious metal prices increased significantly year-on-year (+63.6 percent), although precious metal prices fell by 5.9 percent compared to March 2026. For copper and related goods, costs jumped by 20.9 percent compared to the previous year. Raw iron, steel, and ferroalloys were cheaper than the previous year (-0.9 percent), although reinforced concrete steel cost 0.1 percent more. Wood and wood/bark goods also increased in price (+5.4 percent), including sawn softwood (+8.7 percent) and sawn hardwood (+2.9 percent). There were significant cost increases for pellets, briquettes, and firewood (+25.9 percent versus the previous year), although prices fell by 3.2 percent compared to March 2026.

The prices for basic chemical raw materials rose by 3.2 percent compared to the previous year, rising by 5.2 percent just from March 2026. Fertilizers were 8.4 percent more expensive than a year ago and 5.5 percent more expensive than in March 2026.

The prices for glass and glass products rose by 3.3 percent compared to the previous year. Processed and refined flat glass cost 6.5 percent more, while hollow glass prices fell by 1.7 percent compared to April 2025.

Price decreases compared to April 2025 were also observed for paper, cardboard, and related goods, which cost 1.7 percent less than the previous year. Feed for livestock (-6.1 percent) and wheat flour (-4.0 percent) were also significantly cheaper than in April 2025.