Producer prices for industrial products in Germany experienced a modest rise of 0.8% in December 2024 compared to the same month in the previous year, according to the latest figures from the Federal Statistical Office (Destatis). However, there was a slight decline of 0.1% from November 2024, indicating some volatility in price movements. On average, industrial producer prices in 2024 were 1.8% lower than in 2023, marking a shift from the slight increase recorded in the previous year.
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The year-on-year rise in December 2024 was primarily driven by higher prices for capital goods, which saw a notable increase. Consumer goods and durable goods also became more expensive, while the energy sector saw price reductions. Excluding energy, producer prices increased by 1.2% compared to December 2023, with prices remaining stable from the previous month.
In the energy sector, there was a decline in prices compared to December 2023 and the month prior. Energy costs dropped by 0.2% year-on-year, largely due to a significant decrease in natural gas prices, which fell by 5.6% across all consumer groups. Electricity prices were also lower, falling by 1.3% compared to the same period last year.
Meanwhile, capital goods saw a continued upward trend, with prices rising by 1.8% compared to December 2023. Machinery and motor vehicles, including parts, recorded price increases, which helped offset other areas of the market. Consumer goods prices increased by 2.6%.
Durable goods, such as household appliances, became 1% more expensive in December 2024, reflecting ongoing price pressure in this segment. The price of intermediate goods also saw a slight increase, driven in part by the higher costs of natural stone, construction gypsum, and certain electrical products. Conversely, metals became cheaper on average, although copper and semi-finished copper products saw price increases.
Looking at 2024 as a whole, energy prices were the largest contributor to the decline in producer prices. The average cost of energy fell by 6.2% throughout the year, driven by sharp drops in natural gas and electricity prices. Despite this, the prices of capital goods and consumer goods both rose slightly compared to 2023, reflecting broader inflationary pressures in these sectors. Consumer goods prices were primarily affected by food prices, with notable increases in items such as butter and processed confectionery.
Overall, while the energy sector has exerted downward pressure on industrial producer prices, other segments, particularly capital and consumer goods, have maintained upward momentum. These mixed trends illustrate the complex economic environment and reflect both resilience and volatility in different parts of the economy.
More information:
Federal Statistical Office (Destatis)
www.destatis.de