Germany’s producer prices fell by 0.2% year-on-year in March 2026, easing from a 3.3% decline in February and marking the smallest drop since the downward trend began in March of the previous year. The moderation in the annual decline was largely driven by a slower fall in energy prices (-3.2%), as lower natural gas and electricity costs were partly offset by sharp increases in mineral oil product prices, reflecting the impact of heightened tensions in the Middle East.
Prices for non-durable consumer goods also decreased (-0.3%), mainly due to cheaper food, especially butter and pork. In contrast, prices for capital goods (1.9%) and durable consumer goods (1.9%) continued to rise, as did prices for intermediate goods (1.5%), primarily on the back of higher metals and wood product costs. Excluding energy, producer prices increased by 1.3%.
On a monthly basis, producer prices surged 2.5%, the strongest rise since August 2022 and well above the expected 1.4% increase, driven mainly by a 7.5% jump in energy costs.
