Press release No. 279 of 19 July 2024

Producer prices of industrial products (domestic sales), June 2024
-1.6% on the same month a year earlier
0.2% on the previous month

WIESBADEN – The producer prices of industrial products were 1.6% lower in June 2024 than in June 2023. In May 2024, the year-on-year change rate was -2.2%. The Federal Statistical Office (Destatis) also reports that producer prices in June 2024 were up 0.2% on May 2024.

 

In June 2024, lower energy prices continued to be the main reason for the year-on-year decline in producer prices. Intermediate goods were also less expensive than in June 2023, whereas higher prices had to be paid for consumer and capital goods. 

Sharp declines in the prices of natural gas (distribution) and electricity 

Energy prices in June 2024 were down 5.9% from June 2023. Compared with May 2024, energy prices dropped by 0.1%. Lower prices for natural gas and electricity had the biggest influence on the year-on-year rate of change for energy. Across all customer groups, gas prices declined by 14.8% from June 2023; they were up 0.3% on May 2024. In June 2024, electricity cost 11.0% less than in June 2023, and 0.4% more than in May 2024, across all consumer groups. 

Mineral oil products were 2.8% more expensive than in June 2023. They declined by 1.1% from May 2024. Heating oil prices increased by 12.9% from a year earlier (+2.3% compared with May 2024). Motor fuels cost 1.5% more than in June 2023 but were 1.3% less expensive than in May 2024. 

Excluding energy prices, producer prices were up 0.3% on June 2023 (+0.1% compared with May 2024). 

Price decreases for intermediate goods mainly due to lower prices of paper and paperboard and metals 

Intermediate goods prices were 0.9% lower in June 2024 than a year earlier. Compared with the previous month, they increased by 0.1%. 

The year-on-year decline was mainly due to the development of the prices of paper, paper products and metals. Paper and paper products cost 4.4% less than in June 2023. Compared with the previous month, these prices increased by 0.7%. Newsprint cost 10.2% less than in June 2023, while the prices of boxes and cartons made of corrugated paper or paperboard were down 7.9% year on year. The prices of metals were also significantly lower (-4.1%) than in the same month a year earlier. Basic iron, steel and ferro-alloys were 11.0% less expensive than in June 2023. The prices of concrete reinforcing bars declined by just 1.4% year on year. 

Wood and products of wood and cork were 3.8% less expensive in June 2024 than in June 2023. Particle boards cost 13.1% less than in the same month of the previous year and fibre board prices were down 8.9%. Non-coniferous timber cost 3.5% less than in the corresponding month of the preceding year; by contrast, coniferous timber was 0.4% more expensive than in June 2023. Basic chemicals (total) cost 3.4% less than in the same month of the previous year. Compared with the same month a year earlier, the prices of glass and glass products were down 6.7%, prepared feeds for farm animals cost 6.6% less and the price of cement was down 1.5%. 

Price increases compared with June 2023 were observed for mortar (+5.0%), plaster products for construction purposes (+3.7%) and lime (+2.7%). Stone, gravel, sand, clay and kaolin cost 5.2% more than in the same month of the previous year. 

Price increases for capital goods 

In June 2024, capital goods prices were up 2.3% year on year (+0.2% compared with May 2024). Machinery cost 2.5% more than in June 2023. The prices of motor vehicles, trailers and semi-trailers increased by 1.5% from June 2023. 

Non-durable consumer goods cost 0.6% more in June 2024 than in June 2023 (+0.3 % on May 2024). In June 2024, food cost slightly more (+0.1%) than in June 2023. Confectionery prices rose by 24.7% compared with June 2023. Butter cost 24.5% more than a year earlier. Compared with May 2024, butter prices increased by 2.8%. Preserved fruit and vegetables cost 5.2% more than in June 2023. In June 2024, the price of milk, in particular, was lower year on year (-7.9%). 

Durable consumer goods were 0.7% more expensive in June 2024 than a year earlier. Compared with May 2024, the prices of durable consumer goods were up 0.1%.

Rebasing the producer price index for industrial products

The producer price index for industrial products was rebased to 2021 as of reference month January 2024. As a general rule, the base year is changed every five years. The recalculation of the producer price index relies on a weighting scheme that is based on the domestic sales of industrial products in 2021 and is used for weighting the subindices in the calculation of the overall index.

When the base year was changed, all indices as of January 2021 were recalculated, taking account of the new weighting scheme. The price indices determined using the old base of 2015 are therefore no longer valid. More information on the rebasing of the producer price index for industrial products (only in German) is available in the “Revisionen in der Preisstatistik" (only in German) section on the "Preisstatistik im Überblick" (only in German)” page of the Federal Statistical Office’s website.

Methodological notes:

The producer price index for industrial products 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.

More information:

The statistical report (only in German) on producer price indices of industrial products (domestic sales) also includes the latest results. Long time series for the overall index are also 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 portal also contains the Economic Pulse Monitor (only in German) tool for real-time economic monitoring.