19.12.202507:07:40UTC+00German Producer Prices Fall the Most in 19 Months

In November 2025, Germany experienced a 2.3% decline in producer prices compared to the same month the previous year, following a 1.8% decrease in October. This fall surpassed market predictions of a 2.2% reduction, marking the ninth consecutive month of annual declines and representing the sharpest drop since April 2024. The primary cause was a reduction in energy costs, which fell by 9.0%. Within the energy sector, significant reductions were noted in natural gas (-14.2%), electricity (-11.6%), mineral oil products (-2.6%), and heating oil (-0.2%). Meanwhile, prices for intermediate goods also saw a slight decrease of 0.5%. In contrast, there was an uptick in prices for non-durable consumer goods (1.3%), durable consumer goods (1.8%), and capital goods (1.9%). When energy costs are excluded, producer prices rose by 0.8%, maintaining the same rate as in October. On a month-to-month basis, the producer price index remained steady in November, failing to meet anticipated growth of 0.1% and following a similar 0.1% increase in October.