Press release No. 374 of 20 September 2023
Producer prices of industrial products (domestic sales), August 2023
-12.6% on the same month a year earlier
+0.3% on the previous month
WIESBADEN – The producer prices of industrial products were 12.6% lower in August 2023 than in August 2022. This was the largest decline in producer prices compared with the same month a year earlier since data collection began in 1949. 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 increase in producer prices in August 2022 (+45.8% from August 2021) was the highest ever registered since records began. The Federal Statistical Office (Destatis) also reports that the year-on-year change rate was -6.0% in July 2023. Compared with July 2023, producer prices were up 0.3% in August 2023.
The main reason for the year-on-year decline in producer prices were lower energy prices, but also decreases in the prices of intermediate goods. Price increases for consumer goods and capital goods continued to slow.
Year-on-year decline in energy prices mainly due to lower electricity prices
Energy prices in August 2023 were down 31.9% from August 2022. Compared with July 2023, however, energy prices were up 1.6%. 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 August 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 43.2% compared with August 2022 but were up 2.6% from July 2023.
Natural gas (distribution) cost 32.4% less in August 2023 than in August 2022 across all customer groups. Compared with July 2023, however, natural gas prices were up 0.6%.
The prices of mineral oil products were down 8.7% in August 2023 compared with August 2022, but were up 5.9% from July 2023. Light heating oil cost 24.0% less than a year earlier (+16.5% compared with July 2023). Motor fuel prices fell by 3.0% (+5.9% from July 2023).
When energy prices are excluded, producer prices in August 2023 were 1.2% higher than in August 2022 and 0.4% lower than in July 2023.
Price decreases for intermediate goods mainly due to lower metal prices
Intermediate goods prices were 4.1% lower in August 2023 than a year earlier. Compared with the previous month, they were down 0.7%.
The year-on-year decline in prices was mainly due to the price development for metals. Metal prices dropped by 10.8% from August 2022 and were 1.3% lower than in the previous month. Basic iron, steel and ferro-alloys were 16.1% less expensive than in August 2022. The prices of concrete reinforcing bars declined by 35.5% year on year.
Very large price decreases were also recorded for fertilisers and nitrogen compounds (-40.8% compared with August 2022). The prices of wooden containers were 27.2% lower than in August 2022, and the prices of wood and secondary raw materials were down 23.4% and 20.4%, respectively.
By contrast, large price increases compared with August 2022 were observed for lime and plaster (+34.1%), ready-mixed concrete (+26.7%), cement (+26.3%) and hollow glass (+24.9%). Gravel for construction and natural sands were 16.8% more expensive.
Significant hike in non-durable consumer goods prices mainly due to higher food prices
In August 2023, the prices of non-durable consumer goods were 6.9% higher than in August 2022. Compared with July 2023, they were down 0.3%. Food prices increased by 7.6% from the previous year, with a particularly pronounced increase in sugar prices (+87.2% on August 2022). Processed potatoes were 32.3% more expensive than in August 2022, and pork prices were up 24.7%. The prices of processed and preserved fruit and vegetables were 17.8% higher than a year earlier. Only a few products were less expensive in August 2023 than in the same month of the preceding year. For example, the prices of crude vegetable oils decreased by 39.7% and butter prices dropped by 32.4%. Processed liquid milk was 5.4% less expensive than in August 2022, and coffee was 5.3% less expensive.
A year-on-year rise of 5.2% was observed for durable consumer goods in August 2023, which was especially due to the development of prices for furniture (+5.5% on August 2022) and domestic appliances (+5.7% on August 2022). Compared with July 2023, the prices of durable consumer goods remained unchanged.
Capital goods prices rose by 5.1% year on year, mainly driven by increases in machinery prices (+6.4% on August 2022) and in the prices of motor vehicles, trailers and semi-trailers (+4.1% on August 2022). Compared with July 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 “Prices 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)
