German Producer Prices Rise 4.6 Percent as Mineral Oil Products Run 40.5 Percent Above Last Year
Producer prices of industrial products sold within Germany were 4.6 percent higher in August than a year earlier and 1.1 percent higher than in July, the Federal Statistical Office said on 18 September. Energy did most of the work: it cost 8.3 percent more than in August 2025, and excluding energy the index rose 3.1 percent on the year and 0.2 percent on the month, a gap of 1.5 points at the headline on our calculation.
Mineral oil products lead the energy component
Energy prices rose 3.2 percent over the month. Within them, prices of mineral oil products were 40.5 percent above August 2025 and 4.9 percent above July, which the statisticians attribute to the conflict in Iran and the Middle East. Naphtha cost 44.4 percent more than a year earlier, heating oil 65.3 percent more and motor fuels 37.7 percent more. Away from oil the picture is calmer: natural gas across all consumer groups cost 7.5 percent more, electricity 1.7 percent more, and district heating 0.5 percent less.
| Category | Year on year | On July |
|---|---|---|
| Energy | 8.3% | 3.2% |
| Intermediate goods | 6.1% | 0.2% |
| Capital goods | 2.4% | 0.2% |
| Durable consumer goods | 2.1% | 0.1% |
| Non-durable consumer goods | -2.0% | 0.2% |
Producer prices of industrial products, domestic sales. The overall index rose 4.6 percent on the year and 1.1 percent on the month.
Metals lead the intermediate goods rise
Intermediate goods prices rose 6.1 percent on the year, driven mainly by metals, up 14.8 percent. Precious metals were 34.6 percent dearer than a year earlier, as were copper and semi-finished copper products. Basic iron, steel and ferro-alloys cost 6.9 percent more, with reinforcing steel up 6.3 percent. Basic chemicals rose 11.2 percent and fertilisers 8.4 percent.
Wood and products of wood and cork cost 7.1 percent more, with coniferous timber up 8.2 percent, and pellets, briquettes and logs were 36.6 percent more expensive than a year earlier. Glass and glass products as a whole were unchanged, and paper and paper products rose 0.7 percent.
| Intermediate good | Change on August 2025 |
|---|---|
| Precious metals | 34.6% |
| Copper and semi-finished copper products | 34.6% |
| Metals, total | 14.8% |
| Basic chemicals | 11.2% |
| Basic iron, steel and ferro-alloys | 6.9% |
Selected components of the intermediate goods index, which rose 6.1 percent on the year.
Food is falling at the factory gate
Non-durable consumer goods produced and sold in Germany cost 2.0 percent less than a year earlier, and within them food prices fell 4.3 percent. Butter was 40.5 percent cheaper than in August 2025, pork 16.3 percent cheaper and beef 9.3 percent cheaper. Vegetable oils, up 17.5 percent, and sugar, up 3.6 percent, went the other way. Capital goods rose 2.4 percent on the year, with machinery and with motor vehicles, trailers and semi-trailers both up 2.0 percent.
Why it matters: For Germany and the wider euro area, producer prices reflect price developments at an early stage of the economic process, so on our reading what shows here can reach consumers later. The composition matters as much as the headline. Energy is the largest single driver of the gap between the headline rate and the rate excluding it, but upstream pressure is visible in metals and chemicals too, while factory gate food prices are falling outright.
Outlook: The survey reference date is the 15th of each month and the current base year is 2021, so on our reading the September index will capture prices as they stood in mid September rather than at the end of the month.
Sources: Federal Statistical Office.
