Wholesale prices in Germany accelerated their upward trend in November 2025, according to data released Monday by the Federal Statistical Office (Destatis). The index rose 1.5% year-on-year, a notable increase from the 1.1% and 1.2% recorded in October and September respectively. Month-on-month, prices climbed by 0.3%, signaling persistent inflationary pressures within the German supply chain.
The primary driver of this overall increase was a significant surge in prices for food and beverage products, including tobacco. These costs were, on average, 3.2% higher in November 2025 compared to the same period last year. Within that category, particularly acute increases were observed for coffee, tea, cocoa and spices (up 21.9%), as well as sugar, confectionery and baked goods (up 12.3%). Rising costs for meat and meat products (7.3%) and live animals (4.8%) also contributed substantially.
The data raises concerns about the potential impact on German consumers and businesses already grappling with rising living costs. While government initiatives have focused on energy price relief, the persistent increase in food prices, a staple expenditure for households, could exacerbate social tensions and fuel calls for broader economic intervention.
Beyond the food sector, the wholesale price of non-ferrous metals and related products jumped significantly, increasing 28.1% year-on-year and 3.5% compared to October 2025. This suggests renewed strain on industrial production and potentially reflects global supply chain difficulties, adding to challenges for manufacturers reliant on imported raw materials.
While prices for grains, raw tobacco, seeds and animal feed experienced a decrease compared to November 2024 (-5.9%), the subsequent month-on-month increase (1.4%) indicates a volatile and unpredictable market, complicating long-term planning for agricultural businesses.
The decline in prices for scrap materials and waste (-6.5% year-on-year, -0.6% month-on-month) offers a marginal point of respite, but the overall trend underscores a concerning pattern of increasing wholesale costs that could further erode purchasing power and temper economic growth within Germany. Analysts are now closely watching whether this trend will continue into the new year and whether the Bundesbank will respond with adjustments to monetary policy.
