Germany’s Producer Prices Decline in April, Energy Prices Lead the Way Down
Germany’s producer prices, a key indicator of the country’s economic health, have seen a decline in April, the Federal Statistical Office (Destatis) reported on Tuesday. The data shows that producer prices in April were 0.9 percent lower than in the same month of the previous year, a significant drop from the 0.2 percent increase in March.
The main reason for the decline in producer prices was the lower energy prices. Consumer and capital goods, as well as intermediate goods, were more expensive in April compared to the same month of the previous year. Excluding energy, producer prices rose by 1.5 percent compared to the same month of the previous year and by 0.4 percent compared to March.
Energy was the main driver of the decline in producer prices, with a 6.4 percent decrease in April compared to the same month of the previous year and a 2.9 percent drop compared to March. The largest influence on the year-on-year change in energy prices came from the decline in gas prices in the distribution sector, with a 6.2 percent drop in April 2025 compared to April 2024 and a 3.6 percent drop compared to March.
Electricity was 7.5 percent cheaper in April 2025 than in the same month of the previous year and 3.3 percent cheaper than in March. District heating, on the other hand, was only 0.1 percent cheaper in April 2025 than in the same month of the previous year and 0.2 percent cheaper than in March.
Petroleum products saw a significant decline, with a 10.4 percent drop in April 2025 compared to the same month of the previous year and a 3.3 percent drop compared to March. Light heating oil was 16.5 percent cheaper in April 2025 than in the same month of the previous year and 3.1 percent cheaper than in March. Fuel prices were 9.5 percent lower in April 2025 than in the same month of the previous year and 1.2 percent lower than in March.
Investment goods, on the other hand, saw a moderate increase, with a 2 percent rise in April 2025 compared to the same month of the previous year and a 0.3 percent rise compared to March. Machinery prices rose by 1.9 percent in April 2025 compared to the same month of the previous year and by 0.1 percent compared to March. The prices of vehicles and vehicle parts increased by 1.4 percent in April 2025 compared to the same month of the previous year and by 0.3 percent compared to March.
Consumer goods, meanwhile, saw a more significant increase, with a 3.2 percent rise in April 2025 compared to the same month of the previous year and a 0.9 percent rise compared to March. Food prices rose by 3.8 percent in April 2025 compared to the same month of the previous year and by 1.3 percent compared to March. Coffee, in particular, saw a significant increase, with a 43.3 percent rise in April 2025 compared to the same month of the previous year and an 8.1 percent rise compared to March. Meat, particularly beef, also saw a significant increase, with a 30.4 percent rise in April 2025 compared to the same month of the previous year and a 3.4 percent rise compared to March. Butter, meanwhile, rose by 24.6 percent in April 2025 compared to the same month of the previous year, but fell by 1.2 percent compared to March. Vegetable oils, on the other hand, rose by 15.8 percent in April 2025 compared to the same month of the previous year and by 0.2 percent compared to March.
Intermediate goods, meanwhile, saw a more modest increase, with a 1.4 percent rise in April 2025 compared to the same month of the previous year and a 0.2 percent rise compared to March.
The prices of raw materials, a key category of intermediate goods, saw a moderate increase, with a 0.3 percent rise in April 2025 compared to the same month of the previous year and a 0.2 percent rise compared to March. Paper, cardboard and paper products, meanwhile, saw a 3.2 percent rise in April 2025 compared to the same month of the previous year and a 0.6 percent rise compared to March. Animal feed for livestock, a key input for the agricultural sector, rose by 4.7 percent in April 2025 compared to the same month of the previous year, but remained unchanged compared to March.
Wood and wood products, a key category of raw materials, saw a 4.6 percent rise in April 2025 compared to the same month of the previous year and a 1.1 percent rise compared to March. The prices of high-quality wood, meanwhile, rose by 13.1 percent in April 2025 compared to the same month of the previous year and by 3.1 percent compared to March. Low-quality wood, on the other hand, fell by 2.6 percent in April 2025 compared to the same month of the previous year and by 0.1 percent compared to March.
Metal prices, a key category of raw materials, saw a moderate decline, with a 0.4 percent drop in April 2025 compared to the same month of the previous year and a 0.2 percent drop compared to March. Raw iron, steel and ferroalloys were 5.5 percent cheaper in April 2025 than in the same month of the previous year and 1.2 percent cheaper than in March. Copper and copper products, on the other hand, were 1.5 percent cheaper in April 2025 than in the same month of the previous year and 2.6 percent cheaper than in March. The prices of reinforcing steel, meanwhile, rose by 1.3 percent in April 2025 compared to the same month of the previous year and by 3.3 percent compared to March.
Glass and glass products, a key category of raw materials, saw a moderate decline, with a 2.2 percent drop in April 2025 compared to the same month of the previous year and a 0.9 percent drop compared to March. Flat glass, meanwhile, was 6.1 percent cheaper in April 2025 than in the same month of the previous year and 0.3 percent cheaper than in March. Coated and processed flat glass, on the other hand, was 1.5 percent cheaper in April 2025 than in the same month of the previous year and 0.7 percent cheaper than in March. Chemical raw materials, a key category of intermediate goods, saw a moderate decline, with a 1.2 percent drop in April 2025 compared to the same month of the previous year and a 0.6 percent drop compared to March.