Producer prices for industrial goods were 0.2% lower in March 2026 compared to March 2025. According to data from the Federal Statistical Office (Destatis) on Monday, producer prices rose by 2.5% from the previous month, marking the largest month-over-month increase since August 2022 (which saw a 5.4% rise).
Both the year-on-year decrease and the substantial month-on-month increase in producer prices are primarily attributed to changes in energy costs. The impact of the conflicts in Iran and the Middle East was particularly evident in significant year-on-year price increases for mineral oil products, alongside sharp increases for almost all energy commodities compared to the previous month. However, overall energy prices fell compared to March 2025 due to price drops for natural gas and electricity compared to the previous year month.
Consumer goods were cheaper than a year ago. Conversely, capital goods, used goods, and semi-finished goods were more expensive than in March 2025. Excluding energy, producer prices rose by 1.3% in March 2026 compared to the previous year, and by 0.4% compared to February 2026.
In March 2026, energy was 3.2% cheaper than a year ago. However, energy prices rose by 7.5% compared to February 2026, representing the steepest month-over-month increase since August 2022 (which saw a 14.3% jump). In particular, the prices for mineral oil products saw a sharp rise in March 2026, linked to the developments in Iran and the Middle East. While other energy carriers, such as natural gas and electricity, saw comparatively smaller increases due mainly to long-term contracts and pricing mechanisms, the high price levels for natural gas and electricity-which persist since the start of the war in Ukraine-led to price declines in these sectors in March 2025 compared to the previous year.
Mineral oil product prices increased by 18.3% compared to March 2025, and by 22.9% compared to February 2026. Light heating oil cost 55.2% more than in March 2025 and 53.4% more than in February 2026. Fuel prices were 29.5% higher than in March 2025 and 22.3% higher than in February 2026.
Distributed natural gas cost 8.0% less across all consumer groups compared to the previous year, but 5.7% more than in February 2026. However, the wholesale exchange prices for natural gas, included in the producer price index, clearly showed the impact of the conflict in Iran and the Middle East as early as March 2026; these wholesale prices rose by 22.1% year-on-year and by 57.3% compared to February 2026. Due to their low weight in the overall index, however, this price increase had only a minor effect on the total development.
Electricity prices fell by 5.8% compared to March 2025, but rose by 3.1% from the previous month. District heating was 0.6% cheaper year-on-year.
Capital goods prices were 1.9% higher in March 2026 compared to the previous year (a 0.3% increase from February 2026). Machines cost 1.7% more, and prices for cars and car parts rose by 1.2% compared to March 2025. Used goods were 1.9% more expensive in March 2026 compared to the previous year (a 0.1% increase from February 2026).
In contrast, consumer goods produced and sold in Germany cost 0.3% less than a year ago, but 0.6% more than in February 2026. Among consumer goods, food prices fell overall by 1.4%, though they rose by 0.8% compared to February 2026. Butter (-39.8%) and pork (-5.8%) were noticeably cheaper than in March 2025. Pork prices rose by 7.7% from February 2026, while beef (+14.9%) and coffee (+4.7%) were more expensive year-on-year.
Semi-finished goods prices were 1.5% higher in March 2026 compared to the previous year (a 0.7% increase from February 2026). The price increase compared to March 2025 was mainly due to higher metal prices (+8.2%). Notably, precious metal prices rose significantly by 72.8% compared to the previous year, and by 3.2% from February 2026. Copper and semi-finished copper products also cost more than in the previous year (+17.6%). However, raw iron, steel, and ferroalloys were cheaper than last year (-0.8%), although construction steel cost 0.5% more.
Wood and wood and cork goods (+6.0%) were also more expensive year-on-year, with sawn softwood rising by 11.2% and sawn lumber by 2.7%. Significant price hikes were recorded for pellets, briquettes, and firewood, all up by 26.8% compared to the previous year.
Prices for glass and glass products rose by 3.8% year-on-year. Among these, refined and processed flat glass was 6.8% more expensive, while hollow glass prices (-2.2%) decreased compared to March 2025.
Chemically basic raw materials also saw price drops compared to March 2025 (-2.4%), although fertilizer prices rose by 3.3% (+2.3% from February 2026), noted the statisticians. Paper, cardboard, and goods made from them cost 2.3% less than the previous year. Feed for farm animals (-7.4%) and wheat flour (-4.3%) were also significantly cheaper than in March 2025, despite feed prices increasing by 1.1% and wheat flour prices increasing by 0.9% compared to the previous month.
