FX.co ★ German Producer Prices Continue to Drop

In May 2025, Germany experienced a 1.2% year-on-year decrease in producer prices, matching market forecasts and following a 0.9% decline in April. This marks the third month in a row of decreasing producer prices, with the rate being the fastest since September 2024. The decline is primarily attributed to reduced energy costs, which fell by 6.7%, including decreases in electricity (-8.1%), natural gas (-7.1%), and mineral oil products (-9.6%). The cost of intermediate goods also saw a slight reduction of 0.2%. Conversely, there was an increase in prices for non-durable consumer goods (3.6%), durable consumer goods (1.6%), and capital goods (1.9%). When excluding energy, producer prices rose by 1.3%, a slight easing from the 1.5% increase seen the month before. On a monthly comparison, the Producer Price Index (PPI) dropped by 0.2% in May, performing slightly better than the anticipated 0.3% decline and improving upon April's 0.6% reduction.