Press release No. 489 of 20 December 2023
Producer prices of industrial products (domestic sales), November 2023
-7.9% on the same month a year earlier
-0.5% on the previous month
WIESBADEN – The producer prices of industrial products were 7.9% lower in November 2023 than in November 2022. In October 2023, the year-on-year change rate was -11.0%. The development is still mainly attributable to a base effect caused by the high price level of the previous year. The Federal Statistical Office (Destatis) also reports that producer prices in November 2023 dropped by 0.5% from October 2023.
Lower energy prices were the main reason for the year-on-year decline in producer prices. Intermediate goods were also less expensive than in the same month a year earlier, whereas higher prices had to be paid for consumer and capital goods than in November 2022.
Year-on-year decline in energy prices mainly due to lower electricity prices
Energy prices in November 2023 were down 21.4% from November 2022. Compared with October 2023, energy prices dropped by 1.4%. Lower electricity prices had the biggest influence on the year-on-year rate of change for energy. Across all customer groups, electricity prices declined by 30.8% from November 2022 (-1.5% from October 2023).
Natural gas (distribution) cost 21.4% less in November 2023 than in November 2022 across all customer groups. Compared with October 2023, natural gas prices were down 1.5% in November 2023.
The prices of mineral oil products decreased by 9.4% in November 2023 compared with November 2022 and were down 3.9% on October 2023. Light heating oil cost 15.7% less than a year earlier (-9.9% compared with October 2023), and motor fuel prices fell by 9.0% (-3.5% on October 2023).
When energy prices are excluded, producer prices were 0.3% higher than in November 2022, but decreased slightly compared with October 2023 (-0.1%).
Price decreases for intermediate goods mainly due to lower prices of metals and basic chemicals
Intermediate goods prices were 4.1% lower in November 2023 than a year earlier. Compared with the previous month, they were down 0.2%.
The year-on-year decline in prices was mainly due to the price development for metals and basic chemicals. Metal prices dropped by 10.5% from November 2022 and were 0.4% lower than in the previous month. Basic iron, steel and ferro-alloys were 16.3% less expensive than in November 2022. The prices of concrete reinforcing bars declined by 24.6% year on year. Basic chemicals (total) were 9.9% less expensive than in the same month of the previous year. Very large price decreases were recorded for fertilisers and nitrogen compounds (-40.9% compared with November 2022). The prices of prepared feeds for farm animals were down 21.2% on November 2022. The same decrease was observed for paper and paperboard prices (-21.2%). Wood prices dropped by 17.3% and plastics in primary forms were 9.2% less expensive.
By contrast, large price increases compared with November 2022 were observed for ready-mixed concrete (+24.2%), cement (+23.8%), lime and plaster (+17.4%). Gravel for construction and natural sands were 17.0% more expensive, hollow glass prices were up 16.5%.
Increase in non-durable consumer goods prices mainly due to higher food prices
In November 2023, the prices of non-durable consumer goods were 3,7% higher than in November 2022. Compared with October 2023, they remained unchanged. Food cost 3.4% more compared with the previous year, but the prices decreased slightly from October 2023 (-0.1%). Sugar cost 24.7% more and processed potatoes were 20.7% more expensive than in November 2022. The prices of processed and preserved fruit and vegetables were 13.9% higher than in November 2022, the same increase as in pork prices. Lower prices than in the same month a year earlier were recorded especially for crude vegetable oils (-30.8%), for which particularly sharp price increases had been registered in 2022. Compared with November 2022, butter prices dropped by 21.7% in November 2023, the prices of cheese and curd by 14.8%, and coffee prices were down 5.6%.
A year-on-year rise of 4.0% was observed for durable consumer goods in November 2023, which was especially due to the development of prices for furniture (+4.3% on November 2022). Compared with October 2023, the prices of durable consumer goods were up 0.1%.
Capital goods prices rose by 4.2% year on year, mainly driven by increases in machinery prices (+4.9% on November 2022) and in the prices of motor vehicles, trailers and semi-trailers (+3.7% on November 2022). Compared with October 2023, the prices of capital goods remained unchanged.
Methodological notes:
The index measures the development of prices for products produced and sold in Germany by the mining and quarrying, manufacturing, and energy and water supply sectors. All charges and taxes on goods are included, except value-added tax. The index therefore reflects price developments at an early stage of the economic process. The 15th of each reference month is the survey reference date.
The index of producer prices of industrial products will be rebased to 2021 as of reference month January 2024. First results for the new base year will be released in March 2024.
More information:
The statistical report (only in German) on producer price indices of industrial products (domestic sales) also includes the latest results. As of reference month January 2023, this statistical report has replaced the previous “Fachserie 17 Reihe 2” publication. Long time series for the overall index are available in the table on producer price indices for industrial products (61241-0002) and for sub-indices in the table on producer price indices for industrial products (61241-0004) in the GENESIS-Online database.
Information on CO2 pricing under the Fuel Emission Allowance Trading Act is provided on the “Producer price index for industrial products” page.
Producer prices of industrial products are also available on Dashboard Germany at www.dashboard-deutschland.de (only in German). This data portal of the Federal Statistical Office combines up-to-date indicators from official statistics producers and other data providers on the topics of the economy, finance, health and mobility.
The war in Ukraine and the related sanctions are having an impact on many parts of the economy and society. Relevant data and information are provided on a special webpage at www.destatis.de/ukraine (only in German).
