Germany Producer Prices Change

Producer prices in Germany increased by 0.8% year-on-year in December 2024, up from a 0.1% gain in November but below the expected 1.1% rise. This marked the second consecutive month of growth in producer prices after more than a year of deflation, primarily driven by higher capital goods prices (1.8%), particularly for machinery, motor vehicles, trailers, and semi-trailers. Costs also rose for non-durable consumer goods (2.6%) and intermediate goods (0.1%). Meanwhile, energy prices fell by 0.2%, with higher district heating costs (17.2%) nearly offsetting declines in natural gas (-5.6%), electricity (-1.3%), mineral oil products (-4%), and motor fuel (-3.9%). Excluding energy, producer prices rose by 1.2%. On a monthly basis, the PPI fell by 0.1%, following a 0.5% rise in November. For the entire year, the annual average producer price decline was 1.8%.