Producer prices in Germany decreased by 1.2% year-on-year in May 2025, following a 0.9% drop in the previous month, aligning with market expectations. This marked the third consecutive month of falling producer prices and at the fastest pace since September 2024, largely due to lower energy costs (-6.7%), with prices declining for electricity (-8.1%), natural gas (-7.1%), and mineral oil product (-9.6%).
Costs also dropped for intermediate goods (-0.2%). By contrast, prices rose for non-durable consumer goods (3.6%) and durable consumer goods (1.6%), and capital goods (1.9%). Excluding energy, producer prices increased by 1.3%, easing slightly from a 1.5% rise in the prior month. On a monthly basis, the PPI fell by 0.2% in May, slightly better than market forecasts of a 0.3% decrease and April’s 0.6% decline.
