Service producer prices in Germany increased by 2.1 percent in the second quarter of 2025 compared to the same period in the previous year, according to data released by the Federal Statistical Office (Destatis). Prices also rose by 0.3 percent when compared to the first quarter of 2025. The price increases were primarily driven by rising costs for personnel, materials and energy across numerous service sectors.
The transportation and warehousing sector saw a more moderate increase of 1.6 percent year-on-year. However, other postal, courier and express delivery services experienced the most significant increases at 4.7 percent, resulting from price adjustments implemented at the beginning of 2025. Storage costs also rose considerably, with a 2.8 percent increase, as did road freight transport at 2.4 percent. These rises were attributable to higher energy costs linked to increased carbon dioxide taxes introduced at the start of the year, as well as capacity constraints in loading spaces and increased personnel expenses.
Conversely, prices for sea and coastal water transport significantly decreased, dropping 7.2 percent compared to the second quarter of 2024 and 7.1 percent compared to the first quarter of 2025. This decline is largely due to a continued decrease in demand for transport capacity between Germany and Asia, which also led to a 2.6 percent decrease in prices for related forwarding services.
A slight price increase of 1.3 percent was observed in the information and communication sector, primarily driven by price increases for IT services at the beginning of the year, responding to increasing overhead costs, alongside higher wages and salaries. The most substantial price increases within this sector were seen in software and software licenses at 2.5 percent and IT consulting and support services at 1.9 percent.
Prices for fixed-line telecommunications rose relatively significantly, at 1.9 percent, while wireless telecommunications saw only a slight increase of 0.3 percent.
Within the real estate and housing sector, prices rose by 2.1 percent compared to the second quarter of 2024. The prices for the brokerage and administration of real estate increased more strongly at 2.5 percent than the prices for the rental of properties at 1.9 percent. The rise in brokerage prices was primarily due to increases in the prices of residential properties.
The sector encompassing professional, scientific and technical services also saw another significant price increase of 2.2 percent compared to the previous year. Notably, prices for technical, physical and chemical testing services rose significantly at 3.5 percent, as did legal consulting services at 3.4 percent. As in other service sectors, price adjustments were implemented at the beginning of the year in response to rising overhead costs and increased salaries, with most industries experiencing only slight price increases from the first quarter of 2025 to the second.
Administrative and support service activities registered the largest price increases of all service sectors, rising 3.4 percent compared to the previous year. Cleaning services saw particularly strong increases at 5.0 percent, primarily driven by wage increases. Above-average increases were also observed in the temporary staffing sector at 4.0 percent, influenced by rising operating costs and a challenging labor market for qualified personnel.