Press release No. 416 of 20 October 2023
Producer prices of industrial products (domestic sales), September 2023
-14.7% on the same month a year earlier
-0.2% on the previous month
WIESBADEN – The producer prices of industrial products were 14.7% lower in September 2023 than in September 2022. This was the largest decline compared with the same month a year earlier since the data were first collected in 1949. In August 2023, the year-on-year change rate was -12.6%. The development is mainly attributable to a base effect caused by the very high price level of the previous year. As a result of the war in Ukraine, the producer price increase in August and September 2022 (+45.8% each from the same month a year earlier) was the highest ever registered since records began. The Federal Statistical Office (Destatis) also reports that producer prices were down 0.2% in September 2023 compared with the previous month.
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 September 2022.
Year-on-year decline in energy prices mainly due to lower electricity prices
Energy prices in September 2023 were down 35.3% from September 2022. Compared with August 2023, energy prices dropped by 0.4%. Energy prices had soared after the start of the Russian attack on Ukraine in February 2022, and reached an all-time high in September 2022. In September 2023, 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 46.2% from September 2022 (-2.0% from August 2023).
Natural gas (distribution) cost 36.9% less in September 2023 than in September 2022 across all customer groups. Compared with August 2023, natural gas prices were down 0.6% in September 2023.
The prices of mineral oil products were down 9.0% in September 2023 compared with September 2022, but were up 5.6% from August 2023. Light heating oil cost 10.9% less than a year earlier (+11.4% compared with August 2023). Motor fuel prices were 8.0% lower (+4.4% from August 2023).
When energy prices are excluded, producer prices were 0.8% higher than in September 2022 but 0.1% lower than in August 2023.
Price decreases for intermediate goods mainly due to lower prices of metals and basic chemicals
Intermediate goods prices were 4.2% lower in September 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 11.2% from September 2022 and were 0.8% lower than in the previous month. Basic iron, steel and ferro-alloys were 18.5% less expensive than in September 2022. The prices of concrete reinforcing bars declined by 33.8% year on year. Basic chemicals (total) were 11.6% less expensive than in the same month of the previous year.
Very large price decreases were also recorded for fertilisers and nitrogen compounds (-42.9% compared with September 2022). Wood prices were 20.8% lower than in September 2022, and the prices of secondary raw materials were down 14.0%.
By contrast, large price increases compared with September 2022 were observed for lime and plaster (+30.3%), ready-mixed concrete (+25.7%), cement (+23.1%) and hollow glass (+21.5%). Gravel for construction and natural sands were 17.0% more expensive.
Increase in non-durable consumer goods prices mainly due to higher food prices
In September 2023, the prices of non-durable consumer goods were 5.3% higher than in September 2022. Compared with August 2023, however, they were down 0.3%. Food cost 5.5% more compared with the previous year, and prices were also down from August 2023 (-0.5%). There was a particularly pronounced increase in sugar prices (+84.7% on September 2022). Processed potatoes were 28.5% more expensive than in September 2022, ice cream prices were up 18.5% and processed and preserved fruit and vegetables cost 17.2% more than a year earlier. Pork prices increased by 12.1% year on year. The prices of crude vegetable oils decreased by 35.0% and butter prices dropped by 32.6%. Processed liquid milk was 8.6% less expensive than in September 2022, and coffee was 4.0% less expensive.
A year-on-year rise of 4.7% was observed for durable consumer goods in September 2023, which was especially due to the development of prices for furniture (+5.1% on September 2022) and domestic appliances (+5.2% on September 2022). Compared with August 2023, the prices of durable consumer goods were down 0.1%.
Capital goods prices rose by 4.8% year on year, mainly driven by increases in machinery prices (+6.0% on September 2022) and in the prices of motor vehicles, trailers and semi-trailers (+3.9% on September 2022). Compared with August 2023, capital goods prices were up 0.1%.
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).
