Germany's producer prices rose by 0.8% year-on-year in December 2024, an improvement from the 0.1% increase seen in November but still below the anticipated 1.1% rise.
German producer prices up 0.8% in December
This marked the second consecutive month of price growth after more than a year of deflation, driven mainly by a 1.8% increase in capital goods prices, particularly for machinery, motor vehicles, trailers, and semi-trailers. Additionally, prices for non-durable consumer goods rose by 2.6%, while intermediate goods saw a more modest 0.1% increase.
On the downside, energy prices decreased by 0.2%, as rising costs for district heating (up 17.2%) nearly balanced out declines in the prices of natural gas (-5.6%), electricity (-1.3%), mineral oil products (-4%), and motor fuels (-3.9%). Excluding energy, producer prices saw a more substantial rise of 1.2%.
Germany's PPI drops 0.1% in December, annual decline of 1.8%
The Producer Price Index (PPI) dropped by 0.1% monthly, following a 0.5% increase in November. Germany experienced an average annual decline of 1.8% in producer prices for the full year, highlighting the ongoing challenges in the manufacturing and energy sectors.
