Press release No. 088 of 14 March 2024
Producer prices of industrial products (domestic sales), January 2024
-4.4% on the same month a year earlier
+0.2% on the previous month
WIESBADEN – The producer prices of industrial products were 4.4% lower in January 2024 than in January 2023. This is the first result following the rebasing of the index of producer prices of industrial products to the new base year 2021. In December 2023, the year-on-year change rate was -5.1% using 2021 as the base year (base year 2015: -8.6%). The modified weights within the energy sector that have been implemented in the new weighting scheme are the main reason for the difference between the new rates of change and those based on base year 2015. The Federal Statistical Office (Destatis) also reports that producer prices in January 2024 rose by 0.2% on December 2023.
In January 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 January 2023, whereas consumer and capital goods were more expensive.
Year-on-year decline in energy prices mainly due to lower prices for natural gas (distribution)
Energy prices in January 2024 were down 11.7% from January 2023. In December 2023, the rate had been -15.1% (using base year 2015: -23.5%). Compared with December 2023, energy prices were down 0.1% in January 2024. Lower natural gas prices had the biggest influence on the year-on-year rate of change for energy. Across all customer groups, gas prices declined by 19.8% from January 2023 (-6.3% from December 2023).
Electricity cost 16.3% less in January 2024 than in January 2023 across all customer groups. Compared with December 2023, electricity prices were down 2.0%.
Mineral oil product prices were 7.4% lower than in January 2023 and had dropped 0.5% from December 2023. Heating oil cost 10.7% less than a year earlier (+2.9% compared with December 2023). Motor fuel prices were 6.1% lower (+0.9% compared with December 2023).
When energy prices are excluded, producer prices were 0.5% lower than in January 2023 and were up 0.3% on December 2023.
Price decreases for intermediate goods mainly due to lower prices of metals and basic chemicals
Intermediate goods prices were 3.7% lower in January 2024 than a year earlier. Compared with the previous month, they were up 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 8.1% from January 2023 and were 0.4% lower than in the previous month. Basic iron, steel and ferro-alloys were 11.0% less expensive than in January 2023. The prices of concrete reinforcing bars declined by 14.2% year on year. Basic chemicals (total) were 12.7% less expensive than in the same month of the previous year. Very large price decreases were recorded for fertilisers and nitrogen compounds (-38.8% compared with January 2023). Paper and paperboard were 21.6% less expensive than in January 2023, and the prices of prepared feeds for farm animals were down 18.4%.
By contrast, large price increases compared with January 2023 were observed for non-metal secondary raw materials such as recycled paper (+14.2%). Gravel for construction and natural sands were 10.9% more expensive, lime prices were up 10.1%.
Increase in non-durable consumer goods prices continued to slow
The prices of non-durable consumer goods were 1.1% higher in January 2024 compared with January 2023. A smaller year-on-year price increase was last recorded in May 2021 (+0.4% on May 2020). Non-durable consumer goods cost 0.1% more than in December 2023.
Food prices increased by 0.2% from the previous year. Fruit and vegetable juices cost 17.5% more than in January 2023, the prices of confectionery were 11.9% higher. Sugar prices rose by 11.6% compared with January 2023. Lower prices than in the same month a year earlier were recorded especially for crude vegetable oils (-21.8%), where particularly sharp price increases had been registered in 2022. Butter prices declined by 13.8% in January 2024 compared with a year earlier, the prices of cheese and curd dropped by 13.6%. Processed liquid milk cost 10.6% less.
Durable consumer goods were 1.6% more expensive in January 2024 than a year earlier. Compared with December 2023, these prices were up by 0.3%.
Capital goods prices rose by 3.0% year on year, mainly driven by increases in machinery prices (+4.0%) and in the prices of motor vehicles, trailers and semi-trailers (+2.4%). Capital goods prices were up 0.7% compared with December 2023.
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. The base year is generally changed about 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 productsis available in the “Revisionen in der Preisstatistik” section on the “Preisstatistik im Überblick” page of the Federal Statistical Office’s website.
The following table compares the year-on-year rates of price increase on the new and the previous index base for the year 2023 and for the individual months of January to December 2023.
| Reference period | Base year 2015 (old) | Base year 2021 (new) |
|---|---|---|
| 2023 (annual average) | -2.4 | 0.2 |
| January 2023 | 16.6 | 16.4 |
| February 2023 | 13.5 | 13.9 |
| March 2023 | 6.7 | 7.5 |
| April 2023 | 4.1 | 5.2 |
| May 2023 | 1.0 | 2.5 |
| June 2023 | 0.1 | 1.2 |
| July 2023 | -6.0 | -2.9 |
| August 2023 | -12.6 | -7.6 |
| September 2023 | -14.7 | -9.2 |
| October 2023 | -11.0 | -7.3 |
| November 2023 | -7.9 | -5.0 |
| December 2023 | -8.6 | -5.1 |
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.
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 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.
