March 29, 2024
Producer prices of industrial products in Germany (domestic sales), February 2024
–4.1% on the same month a year earlier
–0.4% on the previous month
The producer prices of industrial products were 4.1% lower in February 2024 than in February 2023. In January, the year-on-year change rate was -4.4%. The Federal Statistical Office (Destatis) also reports that producer prices in February 2024 dropped by 0.4% from January 2024.
In February 2024, lower energy prices continued to be the main reason for the year-on-year decline in producer prices. Intermediate goods were also less expensive than in February 2023, whereas consumer and capital goods were more expensive.
Year-on-year decline in energy prices mainly due to lower prices for natural gas (distribution)
Energy prices in February 2024 were down 10.1% from February 2023. Compared with January, energy prices were down 1.2% in February 2024. Lower prices for natural gas and electricity had the biggest influence on the year-on-year rate of change for energy. Across all customer groups, gas prices declined by 17.7% from February 2023 (-1.3% from January 2024). Electricity cost 16.8% less in February 2024 than in February 2023 across all customer groups. Compared with January 2024, electricity prices were down 4.0%.
Mineral oil product prices were 4.5% lower than in February 2023 and had increased by 2.5% from January 2024. Heating oil cost 1.6% more than a year earlier (+5.6% compared with January 2024). Motor fuel prices fell by 1.4% (+2.7% from January 2024).
When energy prices are excluded, producer prices were 0.8% lower than in February 2023 but 0.1% higher than in January 2024.
Price decreases for intermediate goods mainly due to lower prices of metals and basic chemicals
Intermediate goods prices were 3.8% lower in February 2024 than a year earlier. They remained unchanged compared with previous month.
The year-on-year decline in prices was mainly due to the price development for metals and basic chemicals. Metal prices dropped by 7.8% from February 2023 and were 0.2% lower than in the previous month. Basic iron, steel and ferro-alloys were 10.5% less expensive than in February 2023. The prices of concrete reinforcing bars declined by 10.7% year on year. Basic chemicals (total) were 11.4% less expensive than in the same month of the previous year. Very large price decreases were recorded for fertilisers and nitrogen compounds (-33.1% compared with February 2023). Industrial gases cost 19.6% less than in February 2023, paper and paperboard prices were down 19.5% and the prices of prepared feeds for farm animals were down 19.0%.
By contrast, price increases compared with February 2023 were observed particularly for lime (+10.1%) and for stone, gravel, sand, clay and kaolin (+10.0%). Gravel for construction and natural sands were 9.8% more expensive.
Increase in non-durable consumer goods prices continued to slow
The prices of non-durable consumer goods were 0.2% higher in February 2024 compared with February 2023. This is the lowest increase in prices since April 2021, when non-durable consumer goods were 0.7% less expensive than in April 2020. Non-durable consumer goods cost 0.1% more in February 2024 than in January 2024.
Registering a price decline of 0.6%, food in February 2024 cost less than it did a year earlier for the first time since April 2021 (–1.7% on April 2020). In February 2024, lower prices than in the same month a year earlier were recorded especially for crude vegetable oils (–19.4%), where particularly sharp price increases had been registered in 2022. Prices of processed liquid milk were down 11.8%. Coffee cost 9.7% less than in February 2023. By contrast, fruit and vegetable juices cost 15.4% more than in February 2023 and the prices of confectionery were 12.9% higher. Butter cost 5.6% more than a year earlier after being 13.8% less expensive in January 2024 than in January 2023. This development is due to a base effect, as butter prices in February 2023 fell 19.3% compared with January 2023.
Durable consumer goods were 1.5% more expensive in February 2024 than a year earlier. Compared with January 2024, these prices were up by 0.1%.
Capital goods prices rose by 2.8% year on year, mainly driven by increases in machinery prices (+3.3%) and in the prices of motor vehicles, trailers and semi-trailers (+2.4%). Capital goods prices were up 0.2% compared with January 2024.
Rebasing the producer price index for industrial products
The producer price index for industrial products was rebased to 2021 as of reference month January 2024. The base year is generally changed every five years. The recalculation of the producer price index relies on a weighting scheme that is based on the domestic sales of industrial products in 2021 and is used for weighting the sub-indices in the calculation of the overall index.
Source: DESTATIS
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