Producer prices in Germany dropped by 1.7% year-on-year in September 2025, following a 2.2% decline in August, which was the sharpest drop in 15 months. This marked the seventh consecutive month of annual producer price declines. The overall decrease was primarily driven by lower energy costs, which fell 7.3%. Key contributors within the energy sector included natural gas (-10.7%), electricity (-10.2%), district heating (-2.5%), and mineral oil products (-2.5%). Prices for intermediate goods also declined by 0.9%. In contrast, price increases were recorded in non-durable consumer goods (3.2%), durable consumer goods (1.8%), and capital goods (1.9%). Excluding energy, producer prices rose 0.9%, up from a 0.8% increase in August. On a monthly basis, the producer price index unexpectedly edged down 0.1% in September, missing expectations for a 0.1% increase, following a 0.5% decline in August, which was the sharpest monthly decline in four months.
