FX.co ★ German Producer Prices Fall the Most in 9 Months

In June 2025, Germany experienced a 1.3% decrease in producer prices compared to the previous year, following a 1.2% decline in May, consistent with market expectations. This decline marked the fourth consecutive month of reductions in producer prices and was the steepest since September 2024. The decrease was primarily attributed to a 6.4% reduction in energy costs, with significant declines noted in electricity (-8.8%), mineral oil products (-7.7%), natural gas (-6.9%), heating oil (-6.4%), and motor fuel (-4.2%). Meanwhile, prices for intermediate goods saw a 0.4% decline. Conversely, there were price increases for non-durable consumer goods (3.6%), durable consumer goods (1.7%), and capital goods (1.7%). Excluding energy, there was a 1.3% rise in producer prices, maintaining the same rate as observed in May. On a month-to-month basis, the producer price index rose by 0.1% in June, slightly surpassing market predictions of no change and recovering from a 0.2% decline in May, marking the first monthly increase in seven months.