German producer prices for industrial products decreased by 1.5 percent in July 2025 compared to the same month last year, according to data released Wednesday by the Federal Statistical Office (Destatis). The rate of change had been -1.3 percent in June. Month-on-month, producer prices fell by 0.1 percent in July.
The primary driver of this year-on-year decline was lower energy prices. Intermediate goods also registered lower prices compared to the previous year. Conversely, consumer and capital goods were more expensive. Excluding energy, producer prices rose by 1.0 percent year-on-year in July, a decrease of 0.2 percent compared to June.
Energy prices in July were 6.8 percent lower than in July 2024, with a slight increase of 0.1 percent compared to June. The largest influence on this year-on-year change within the energy sector came from decreased prices for natural gas distribution, which fell by 8.6 percent compared to July 2024 (-1.1 percent compared to June).
Electricity cost 7.8 percent less than in July 2024 (+0.9 percent compared to June) and district heating was 2.1 percent cheaper (+0.8 percent compared to June). Mineral oil products decreased by 7.9 percent year-on-year (+0.4 percent compared to June), with light heating oil 5.7 percent cheaper (-1.0 percent compared to June) and fuel prices 3.9 percent lower (+0.7 percent compared to June).
Prices for capital goods were 1.8 percent higher than in July 2024 (+0.1 percent compared to June), with machinery costing 1.8 percent more. Prices for motor vehicles and parts increased by 0.9 percent compared to July 2024 (-0.1 percent compared to June).
Consumer goods were 3.5 percent more expensive in July 2025 than in July 2024 (-0.2 percent compared to June). Food prices rose by 4.1 percent year-on-year (-0.4 percent compared to June), with coffee up 38.4 percent and beef up 38.0 percent. Butter cost 11.8 percent more, while sugar saw a significant price decrease of 39.5 percent. Pork was 3.9 percent cheaper.
Prices for non-durable goods were 1.9 percent higher than last year (+0.2 percent compared to June), while intermediate goods were 0.9 percent lower year-on-year and 0.3 percent lower than the previous month.
Basic chemical products were 2.6 percent cheaper (-0.3 percent compared to June). Wheat flour cost 3.3 percent less (-0.6 percent compared to June) and animal feed 0.6 percent less (-1.6 percent compared to June).
Metal prices fell by 2.2 percent (-0.6 percent compared to June). Raw iron, steel and ferroalloys were 5.9 percent cheaper and copper products 4.8 percent cheaper. Concrete reinforcing steel was 0.7 percent lower.
Price increases were recorded for wood and wood products, up 4.8 percent (+0.2 percent compared to June), with softwood up 13.1 percent. Hardwood was 0.9 percent cheaper.
Paper, cardboard and products made from these materials were 1.4 percent more expensive. Glass and glassware were also 1.4 percent more expensive. Hollow glass, however, was 4.7 percent cheaper.