Press release No. 448 of 20 November 2023

Producer prices of industrial products (domestic sales), October 2023
-11.0% on the same month a year earlier
-0.1% on the previous month

WIESBADEN – The producer prices of industrial products were 11.0% lower in October 2023 than in October 2022. In September 2023, the year-on-year change rate was -14.7%, which is the largest decline compared with the same month a year earlier since the data were first collected in 1949. The development is still 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. Then the year-on-year increase slowed slightly in October 2022, but still amounted to 34.5%. The Federal Statistical Office (Destatis) also reports that producer prices in October 2023 dropped by 0.1% from September 2023.

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 October 2022.

Year-on-year decline in energy prices mainly due to lower electricity prices

Energy prices in October 2023 were down 27.9% from October 2022. Compared with September 2023, energy prices dropped slightly by 0.1%. 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 October 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 36.2% from October 2022 (-1.4% from September 2023).

Natural gas (distribution) cost 29.6% less in October 2023 than in October 2022 across all customer groups. Compared with September 2023, natural gas prices were up 1.4% in October 2023.

The prices of mineral oil products were down 13.2% in October 2023 compared with October 2022 and down 2.1% from September 2023. Light heating oil cost 22.3% less than a year earlier (-2.1% compared with September 2023). Motor fuel prices fell by 12.8% (-3.0% from September 2023).

When energy prices are excluded, producer prices were 0.2% higher than in October 2022 but 0.2% lower than in September 2023.

Price decreases for intermediate goods mainly due to lower prices of metals and basic chemicals

Intermediate goods prices were 4.6% lower in October 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 11.7% from October 2022 and were 0.9% lower than in the previous month. Basic iron, steel and ferro-alloys were 18.9% less expensive than in October 2022. The prices of concrete reinforcing bars declined by 30.9% year on year. Basic chemicals (total) were 12.1% less expensive than in the same month of the previous year. Very large price decreases were recorded for fertilisers and nitrogen compounds (-45.4% compared with October 2022). Wood prices were 17.9% lower than in October 2022, and the prices of prepared feeds for farm animals were down 22.3%.

By contrast, large price increases compared with October 2022 were observed for ready-mixed concrete (+24.7%), cement (+22.0%), lime and plaster (+19.9%) and hollow glass (+17.5%). Gravel for construction and natural sands were 17.1% more expensive.

Increase in non-durable consumer goods prices mainly due to higher food prices

In October 2023, the prices of non-durable consumer goods were 3.9% higher than in October 2022. Compared with September 2023, however, they were down 0.2%. Food cost 3.7% more compared with the previous year; here, too, the prices were down from September 2023 (-0.3%). Processed potatoes were 29.4% more expensive than in October 2022, the prices of preserved fruit and vegetables were up 16.0% in October 2023 compared with October 2022 and pork cost 10.4% more. The prices of crude vegetable oils decreased by 34.1% and butter prices dropped by 29.5%. Processed liquid milk was 8.8% less expensive than in October 2022, and coffee was 4.6% less expensive.

A year-on-year rise of 4.2% was observed for durable consumer goods in October 2023, which was especially due to the development of prices for furniture (+4.8% on October 2022). Compared with September 2023, the prices of durable consumer goods were up 0.2%.

Capital goods prices rose by 4.4% year on year, mainly driven by increases in machinery prices (+5.4% on October 2022) and in the prices of motor vehicles, trailers and semi-trailers (+3.9% on October 2022). Compared with September 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).