FX.co ★ Germany Producer Prices Fall the Most in 6 Months

In April 2025, Germany experienced a year-on-year decrease in producer prices by 0.9%, following a 0.2% decline in March. This drop exceeded market expectations of a 0.6% reduction and marked the second consecutive month of decreasing prices. This decline was the most significant since the previous October, primarily due to a reduction in energy costs, which fell by 6.4%. Specifically, electricity prices dropped by 7.5%, natural gas prices decreased by 6.2%, and district heating saw a slight dip of 0.1%. In contrast, non-durable consumer goods prices rose by 3.2%, while durable consumer goods experienced a 1.4% increase. Capital goods prices also saw a 2.0% rise, especially in the sectors of machinery (1.9%) and motor vehicles, trailers, and semi-trailers (1.4%). Furthermore, intermediate goods prices inched up by 0.3%. When energy was excluded, producer prices actually increased by 1.5%. On a month-to-month basis, the Producer Price Index (PPI) fell by 0.6%, marking the fifth consecutive month of decline, following a 0.7% reduction in the previous month and missing the market forecast of a 0.3% decrease.