Producer prices for services in Germany increased by an average of 2.4% in 2024 compared to the previous year, according to the Federal Statistical Office (Destatis) on Friday. The producer prices for services rose by 3.3% in the fourth quarter of 2024 compared to the same period in 2023 and by 0.1% compared to the third quarter of 2024.
The prices in the economic sector of Transport and Warehousing increased by 3.8% compared to 2023, after a decline in the previous year (2023 to 2022: -5.8%). The main reason for the price increase was the rise in goods transportation by sea and coastal shipping, with an increase of 8.6% (2023 to 2022: -39.4%). In 2023, the prices were still normalizing after the extraordinary increases in the previous years (2022 to 2021: +20.4%; 2021 to 2020: +81.2%) due to the disruptions in the supply chain caused by the COVID-19 pandemic.
The attacks by the Huthi militia from Yemen on the shipping in the Red Sea led to a general increase in prices. As a result, shipping companies were forced to take the longer route around Africa, which led to higher fuel consumption and thus higher freight prices on these routes. This also affected the logistics services indirectly: the prices for sea logistics services increased by 18.0% compared to 2023. In total, logistics services became 5.7% more expensive (2023 to 2022: -10.7%).
The prices in the sector of Road Freight Transport also increased by 6.0% compared to 2023 (2023 to 2022: +5.2%), mainly due to rising labor and personnel costs, as well as the increase in the toll for heavy goods vehicles at the beginning of the year.
In the sector of Information and Communication, the prices increased by 1.4% compared to 2023. The prices for IT consulting and support increased by 2.6% and for software development and programming by 2.3%. Data processing, hosting and related services also became more expensive, by 2.2%. The price increases in this sector were mainly in response to higher costs for the companies, such as personnel, energy and materials.
In the sector of Real Estate and Housing, the prices increased by 1.7% compared to the previous year, mainly due to the increase in rental prices, which rose by 2.3%. The so-called index rents, which are adjusted according to the consumer price index or other price indices, also had an impact.
In the sector of Freelance, Scientific and Technical Services, the prices increased by 2.7% compared to 2023, a moderate increase. The strongest increase was in the sector of technical, physical and chemical tests, with a rise of 5.8% (2023 to 2022: +5.0%). The price increases were mainly due to rising costs for personnel and materials.
In the sector of Administrative and Support Services, the prices increased by 2.1% compared to 2023, a moderate increase. The strongest increase was in the sector of temporary labor, with a rise of 5.0% (2023 to 2022: +6.5%). The main reason for the price increase was the general labor shortage, as well as the tariff-driven increases in wages. This was also the case for the cleaning services, with a price increase of 3.6%, although on a lower level than the comparison of 2023 to 2022, with a rise of 7.8%.