Data published by the Federal Statistical Office (Destatis) showed that in December, producer prices fell by 0.1% after rising by 0.5% in November. This was the third decrease since the beginning of 2024. Economists had expected an increase of 0.3%. In annual terms, producer prices rose by 0.8%, accelerating from November (+0.1%). This was the second consecutive increase and the strongest since June 2023. Consensus estimates suggested growth of 1.1%. On an annual average basis, industrial producer prices were 1.8% lower in 2024 than in 2023. In 2023, the year-on-year change rate was +0.2% on an annual average.
Destatis said that higher capital goods prices were the main reason for the year-on-year increase in producer prices. Non-durable consumer goods, durable consumer goods and intermediate goods were also more expensive than in December 2023, while energy was less expensive (energy prices fell by 0.2% per annum and by 0.4% m/m). Lower prices for natural gas (distribution) had the biggest influence on the year-on-year rate of change for energy. Across all customer groups, gas prices declined by 5.6% per annum and increased by 0.2% m/m. When energy prices are excluded, producer prices were up 1.2% per year and remained unchanged compared to November.
Intermediate goods prices rose by 0.1% per year, but fell by 0.1% compared to November. The prices of non-durable consumer goods increased by 2.6% per annum and by 0.2% m/m. Food was 3.1% more expensive than in December 2023. Durable consumer goods cost 1.0% more than a year earlier and rose by 0.1% on a monthly basis. Capital goods prices rose by 1.8% year on year and were unchanged compared with November.