The German wholesale price index registered a concerning 1.2% increase in September 2025 compared to the same period last year, according to data released Monday by the Federal Statistical Office (Destatis). This acceleration from the 0.7% recorded in August and the 0.5% in July signals a potential shift in inflationary pressures within the German economy. Month-on-month, prices climbed 0.2%, compounding the upward trend.
The primary driver of this overall increase was a significant surge in prices for food and beverages, tobacco products. These items were, on average, 4.2% higher than in September 2024, a substantial increase from the 0.2% rise observed against August. Specific commodities, particularly coffee, tea, cocoa and spices, witnessed a dramatic 22.2% year-on-year price increase, fueling anxieties about consumer affordability and potential social impacts. Sugar, confectionery and baked goods also registered a notable 14.6% price escalation. Furthermore, increases were observed for live animals (10.7%), meat and meat products (10.5%) and dairy, eggs, edible oils and fats (5.6%), suggesting broad-based inflationary pressures within the agricultural sector.
Beyond food, the wholesale sector dealing in non-ferrous ores, metals and semi-finished products saw a steep 23.5% jump year-on-year, with a further 4.1% increase compared to August, implying potential disruptions in industrial supply chains and impacting manufacturing costs.
While some sectors experienced price declines – notably data processing and peripheral equipment (-4.6% year-on-year) and recycled materials and waste (-9.2% year-on-year) – these were overshadowed by the broad-based price increases. The modest declines in data processing equipment, while potentially reflecting technological advancements and increased competition, do little to offset the broader inflationary trend.
The accelerating wholesale price increases are likely to fuel debate within the German government regarding the effectiveness of current monetary and fiscal policies. Critics argue that persistently rising food prices, in particular, disproportionately affect lower-income households and could exacerbate existing social inequalities. The government faces mounting pressure to address the root causes of these rising costs, which could include external factors such as supply chain disruptions and geopolitical instability and to mitigate the impact on consumers. The long-term implications for German economic competitiveness and the stability of the eurozone remain a key concern.