May 22, 2024

Producer prices of industrial products (domestic sales) in Germany, April 2024
-3.3% on the same month a year earlier
+0.2% on the previous month

The producer prices of industrial products were 3.3% lower in April 2024 than in April 2023. In March, the year-on-year change rate was -2.9%. The Federal Statistical Office (Destatis) also reports that producer prices in April 2024 were up 0.2% on March 2024.

In April 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 April 2023, whereas higher prices had to be paid for consumer and capital goods.

Sharp declines in the prices of natural gas (distribution) and electricity

Energy prices in April 2024 were down 8.2% from April 2023. Compared with March 2024, energy prices dropped by 0.1%. 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 18.0% from April 2023 (-1.0% from March 2024). Electricity cost 14.0% less in April 2024 than in April 2023 across all customer groups. Compared with March 2024, electricity prices increased by 0.1%.

Mineral oil products were 2.1% more expensive than in April 2023. Compared with March 2024, the prices of these products were up 1.7%. Heating oil prices increased by 9.7% from a year earlier (+1.9% compared with March 2024). Motor fuels cost 2.6% more than in April 2023 (+2.5% on March 2024).

Excluding energy prices, producer prices were 0.6% lower than in April 2023 and 0.3% higher than in March 2024.

Price decreases for intermediate goods mainly due to lower prices of paper and paperboard and basic chemicals

Intermediate goods prices were 3.1% lower in April 2024 than a year earlier. Compared with the previous month, they were up 0.3%.

The year-on-year decline in prices was mainly due to the price development for paper, paperboard and paper products and the price development for basic chemicals. The prices of paper, paperboard and paper products were down 7.7% from April 2023, and were up 0.9% on the previous month. Newsprint cost 23.4% less than in April 2023, while the prices of boxes and cartons made of corrugated paper or paperboard were down 10.3% year on year.

Basic chemicals (total) were 6.6% less expensive than in the same month a year earlier. Very large price decreases were recorded for fertilisers and nitrogen compounds (-22.1% compared with April 2023). The prices of synthetic rubber dropped by 14.1% compared with April 2023.

The prices of metals were also significantly lower (-5.8%) than in the same month a year earlier. Basic iron, steel and ferro-alloys were 11.2% less expensive than in April 2023. The prices of concrete reinforcing bars declined by 10.1% year on year. Prepared feeds for farm animals cost 15.0% less than a year earlier and the prices of glass and glass products were down 7.0%.

By contrast, price increases compared with April 2023 were observed particularly for plaster products for construction purposes (+5.6%), mortar (+4.8%) and lime (+4.5%). Stone, gravel, sand, clay and kaolin cost 7.2% more year on year.

Price increases for capital goods

Capital goods prices rose 2.4% year on year (+0.2% compared with previous month). Machinery cost 2.8% more than in April 2023 (+0.2% month on month). The prices of motor vehicles, trailers and semi-trailers were up 1.7% year on year (+0.3% compared with the previous month).

In April 2024, non-durable consumer goods were 0.3% more expensive than in April 2023 (+0.4% on the previous month). Food prices in April 2024 were down slightly (-0.4%) from April 2023 (+0.5% month on month). Lower prices than in the same month a year earlier were recorded in April 2024 especially for milk (-10.6%) and oils and fats (-8.6%). On the other hand, confectionery prices rose by 21.8% compared with April 2023. Butter cost 18.0% more than a year earlier. Compared with March 2024, butter prices were up 1.8%.

Durable consumer goods were 1.0% more expensive in April 2024 than in April 2023. Compared with March 2024, the prices of durable consumer goods were up 0.1%.

Source: DESTATIS
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