German producer prices drop less than expected

Producer prices in Germany fell 1.8% year-on-year in October 2025, following a 1.7% decline in September and compared with market expectations of a 1.9% drop.

This marked the eighth consecutive month of annual producer price declines. The overall decrease was primarily driven by lower energy costs, which fell 7.5%.

Key contributors within the energy sector included natural gas (-12.1%), electricity (-8.3%), mineral oil products (-4.3%), and heating oil (-2.7%).

Prices for intermediate goods also decreased 0.5%. In contrast, price increases were recorded for non-durable consumer goods (2.3%), durable consumer goods (1.7%), and capital goods (1.9%).

Excluding energy, producer prices rose 0.8%, after a 0.9% increase in September. On a monthly basis, the producer price index unexpectedly edged up 0.1% in October, missing expectations for a flat reading, after a 0.1% decline in September