Press release No. 285 of 20 July 2023
Producer prices of industrial products (domestic market), June 2023
+0.1% on the same month a year earlier
-0.3% on the previous month
WIESBADEN – The producer prices of industrial products were 0.1% higher in June 2023 than in June 2022. The Federal Statistical Office (Destatis) reports that this represents the smallest year-on-year change in producer prices recorded since December 2020 (+0.2% on December 2019). In May 2023, the rate of change compared to the same month a year earlier was +1.0%. Compared with the previous month, producer prices were down 0.3% in June 2023. Large year-on-year increases in the prices of non-durable and durable consumer goods were reported alongside substantial decreases in the prices of intermediate goods and energy.
Large hike in non-durable consumer goods prices mainly due to rising food prices
In June 2023, the prices of non-durable consumer goods were 9.4% higher than in June 2022. Compared with May 2023, they rose slightly by 0.1%. Food prices increased by 11.1% from the previous year, with a particularly pronounced increase in sugar prices (+91.2% on June 2022). Processed potatoes were 35.9% more expensive than in June 2022, pork prices were up 31.1%. The prices of processed and preserved fruit and vegetables rose by 19.8% from the previous year, while those of processed liquid milk and cream increased by 15.5%. Only a few products were less expensive in June 2023 than in the same month a year earlier. For example, butter prices dropped by 29.3%, and the prices of crude vegetable oils decreased by 44.0%.
A year-on-year rise of 6.7% was observed for durable consumer goods in June 2023, which was especially due to the development of prices for furniture (+7.3% on June 2022) and domestic appliances (+7.1% on June 2022). Compared with May 2023, the prices of durable consumer goods were up 0.1%.
Capital goods prices rose by 6.3% year on year, mainly driven by increases in machinery prices (+7.8% on June 2022) and in the prices of motor vehicles, trailers and semi-trailers (+5.6% on June 2022). Capital goods prices were up 0.2% compared with May 2023.
Price decreases for intermediate goods mainly due to lower metal prices
Intermediate goods prices were 2.7% lower in June 2023 than a year earlier. Compared with the previous month, they were down 0.9%. The year-on-year decline in prices was mainly due to the price development for metals. Metal prices dropped by 10.6% from June 2022 and were 0.5% lower than in the previous month. Basic iron, steel and ferro-alloys were 17.6% less expensive than in June 2022. The prices of concrete reinforcing bars in bars declined by 42.6% year on year (-6.8% on May 2023). Particularly large year-on-year price decreases were recorded for fertilisers and nitrogen compounds (-32.0%), with prices falling by as much as 15.1% compared with May 2023. Wood prices were 28.9% lower than in June 2022, and those of wooden containers and secondary raw materials dropped by 26.3% and 24.0%, respectively.
By contrast, large price increases were observed for lime and plaster (+41.3%), cement (+31.5%), hollow glass (+31.2%) and ready-mixed concrete (+26.3%) compared with June 2022. Industrial gases were 21.3% more expensive, and the prices of gravel for construction and natural sands were 18.5% higher.
Energy prices down year on year and month on month
The decrease in energy prices was more pronounced than the drop in intermediate goods prices. Energy prices declined by 5.0% in June 2023 from June 2022. Compared with May 2023, they were down 0.2%. Energy prices soared after the start of the Russian attack on Ukraine in February 2022, but have decreased by 34.5% since September 2022. 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 12.4% from June 2022 but increased by 1.5% from May 2023. The prices of mineral oil products were down 21.1% compared with June 2022 and up 0.3% from May 2023. Light heating oil cost 42.4% less than a year earlier (+2.8% compared with May 2023). Motor fuel prices fell by 16.9% (+0.7% from May 2023). Natural gas (distribution) cost 2.4% more in June 2023 than in June 2022 across all customer groups. Compared with May 2023, however, natural gas prices were down 1.6%.
When energy prices are excluded, producer prices were 2.8% higher than in June 2022 and 0.3% lower than in May 2023.
Methodological notes:
The index of producer prices of 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.
The index 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 on “Prices indices of industrial products (domestic market) (only in German) 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 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 (www.destatis.de/ukraine).
