Producer prices continued to fall in August

Wiesbaden – Producer prices for industrial products were 2.2 percent lower in August 2025 than in August 2024. In July 2025, the year-on-year rate of change was -1.5 percent, and in June 2025, it was -1.3 percent. As the Federal Statistical Office (Destatis) announced on Friday, producer prices fell by 0.5 percent in August 2025 compared to the previous month. The main reason for the year-on-year decline in producer prices in August 2025 was lower energy prices. Intermediate goods were also cheaper than a year earlier. Capital goods, consumer goods, and durable consumer goods, however, were more expensive than a year earlier. Excluding energy, producer prices rose by 0.8 percent in August 2025 compared to the same month of the previous year and fell by 0.2 percent compared to July 2025. Energy prices were 8.5 percent cheaper in August 2025 than in the same month of the previous year. Compared to July 2025, energy prices fell by 1.0 percent. The greatest impact on the year-on-year rate of change for energy was the price declines for natural gas in distribution. Across all consumer groups, natural gas prices fell by 11.0 percent compared to August 2024 (-0.7 percent compared to July 2025).

Electricity cost 10.8 percent less than in August 2024 (-1.4 percent compared to July 2025), while district heating cost 1.8 percent less than in the same month last year (+0.0 percent compared to July 2025).

Prices for mineral oil products fell by 7.3 percent compared to August 2024 (-1.9 percent compared to July 2025). Light heating oil cost 7.5 percent less than a year earlier (-5.9 percent compared to July 2025), and fuel prices were 2.5 percent cheaper (-1.9 percent compared to July 2025). Capital goods prices were 1.8 percent higher in August 2025 than in the same month last year (+0.1 percent compared to July 2025). Machinery cost 1.8 percent more than in August 2024 (+0.1 percent compared to July 2025). Prices for motor vehicles and motor vehicle parts rose by 0.9 percent compared to August 2024 (+0.1 percent compared to July 2025). Consumer goods were 3.3 percent more expensive in August 2025 than in August 2024 (-0.1 percent compared to July 2025). Food prices were 4.1 percent higher than in August 2024 (-0.1 percent compared to July 2025). Coffee prices were significantly higher compared to the same month last year, rising 33.1 percent (-0.7 percent compared to July 2025) and beef, rising 36.6 percent (-0.3 percent compared to July 2025). Butter cost 5.3 percent more than a year earlier (-2.0 percent compared to July 2025). Sugar, in particular, was cheaper in August 2025 than in the same month last year, rising 36.8 percent (+1.0 percent compared to July 2025). Pork was 1.9 percent cheaper than a year earlier (-1.0 percent compared to July 2025). Consumer durables were 1.7 percent more expensive in August 2025 than a year earlier (+0.0 percent compared to July 2025). Prices for intermediate goods were 1.0 percent lower in August 2025 than in the same month last year and 0.4 percent lower than in the previous month. Basic chemicals were 2.2 percent cheaper than in the same month last year (-0.2 percent compared to July 2025). Cereal flour cost 3.5 percent less than in August 2024 (-1.9 percent compared to July 2025). Animal feed cost 2.4 percent less than a year earlier (-2.8 percent compared to July 2025). Metal prices fell by 1.1 percent compared to the same month last year (-0.3 percent compared to July 2025). Pig iron, steel, and ferroalloys were 6.4 percent cheaper than in August 2024 (-0.9 percent compared to July 2025). Reinforcing steel prices were 2.7 percent lower year-on-year (-1.9 percent compared to July 2025). In contrast, copper and semi-finished products were 0.4 percent more expensive than in August 2024 (+0.3 percent compared to July 2025). Price increases compared to August 2024 included wood and wood and cork products, with prices rising 4.4 percent (-0.1 percent compared to July 2025). Softwood lumber was 12.4 percent more expensive than in August 2024 (-0.8 percent compared to July 2025). Hardwood lumber cost 1.3 percent more than in the same month last year (+0.2 percent compared to July 2025). Glass and glassware were 2.9 percent more expensive than in the same month last year (+1.3 percent compared to July 2025), and prices for refined and processed flat glass were 4.3 percent higher than in the same month last year (+2.3 percent compared to July 2025). In contrast, hollow glass was 4.2 percent cheaper than in August 2024 (+0.2 percent compared to July 2025). Paper, cardboard, and products made from them cost 0.2 percent less than in August 2024 (-1.0 percent compared to July 2025), according to the Federal Office.