According to data released by the Federal Statistical Office (Destatis) on Monday, producer prices in Germany rose by 1.8 percent in June 2026 compared to the previous year. However, month-over-month, they fell by 0.3 percent.
This yearly increase is primarily attributed to rising costs for intermediate goods, which saw a substantial jump of 5.1 percent. While energy prices also rose slightly by 0.4 percent year-over-year, other sectors like capital goods (+2.1 percent) and durable goods (+1.8 percent) were also pricier than a year earlier. Conversely, consumer goods saw a decline of 2.2 percent. If energy is excluded, producer prices rose 2.4 percent compared to June 2025 and 0.2 percent compared to May 2026.
In terms of energy, prices were 0.4 percent higher year-over-year, but they dropped by 1.8 percent compared to May 2026. Due to hostilities in Iran and the Middle East, mineral oil products surged by 23.7 percent compared to June 2025. This high growth was tempered, however, by a 7.4 percent drop in prices compared to May 2026. Specifically, naphtha crude gasoline cost 38.1 percent more than in June 2025, while light heating oil and fuels increased by 23.6 percent and 12.0 percent, respectively.
In contrast, prices for natural gas and electric power-which still bear the impact of consistently high levels since the war in Ukraine-experienced drops year-over-year. Gas for distribution fell by 1.8 percent across all consumer groups, and electricity prices declined by 4.2 percent compared to June 2025. District heating was 0.5 percent cheaper year-over-year.
The 5.1 percent increase in intermediate goods was largely driven by metal prices, which jumped 11.8 percent. Precious metals saw a particularly dramatic increase of 44.0 percent, and copper and derived semi-products cost 26.0 percent more. Crude iron, steel, and ferroalloys also rose (+3.4 percent), with concrete steel costing 6.2 percent more. Chemical basics saw a 12.9 percent rise year-over-year, while fertilizers cost 17.0 percent more than the previous year. Wood and wood/cork products also increased by 6.5 percent, including needlewood (+9.2 percent) and leafwood (+2.6 percent). Pellet, briquette, and wood chunk prices jumped 28.5 percent compared to the previous year, although they declined by 2.6 percent compared to May 2026.
In the glass sector, prices rose 2.2 percent year-over-year. Refined and processed flat glass was 4.7 percent pricier, while hollow glass prices fell 0.5 percent compared to June 2025. Conversely, paper, cardboard, and related products were cheaper, decreasing by 1.0 percent from the previous year. Animal feed and grain meal were also significantly cheaper compared to June 2025.
Details on manufactured goods show that capital goods were 2.1 percent higher year-over-year, rising 0.2 percent month-over-month. Machines cost 1.9 percent more, and prices for cars and components increased by 1.4 percent. Durable goods were 1.8 percent more expensive year-over-year but remained stable compared to May 2026.
Consumer goods, however, were cheaper, decreasing 2.2 percent compared to the previous year and 0.2 percent compared to May 2026. Overall food prices dropped by 4.5 percent. Specific large reductions were seen in butter (-42.0 percent) and pork (-21.8 percent). Nevertheless, plant oils (+8.5 percent) and bakery/dough goods (+2.6 percent) were more expensive year-over-year.
