Germany's producer prices fall again in December 2025

Germany’s producer prices for industrial products continued to decline at the end of 2025, driven largely by lower energy costs, according to Federal Statistical Office (Destatis).

Producer prices were 2.5 per cent lower in December 2025 than in December 2024 and fell 0.2 per cent month on month. On an annual average basis, producer prices declined 1.2 per cent in 2025 compared with 2024.

Lower energy prices remained the main factor behind the year-on-year (YoY) fall. Energy prices in December 2025 were down 9.7 per cent from a year earlier and dropped 1.2 per cent compared with November 2025. Natural gas prices declined 14.6 per cent YoY across all customer groups, while electricity prices were 11.1 per cent lower.

Excluding energy, producer prices increased. Prices without energy rose 0.9 per cent YoY and 0.1 per cent MoM in December 2025. Capital goods prices climbed 2 per cent YoY, with machinery costs up 1.7 per cent. Durable consumer goods prices rose 1.8 per cent, while intermediate goods prices increased 0.3 per cent, Destatis said in a release.

On an annual average basis in 2025, falling energy prices were the dominant driver of the overall decline. Energy prices dropped 6.2 per cent, with natural gas down 8.3 per cent, electricity 7.5 per cent lower and mineral oil products 5.5 per cent cheaper. Excluding energy, producer prices increased 1.2 per cent over the year.

ALCHEMPro News Desk (HU)