Press release No. 030 of 19 January 2024
Producer prices of industrial products (domestic sales), December 2023
-8.6 % on the same month a year earlier
-1.2 % on the previous month
-2.4 % on an annual average basis in 2023 compared with 2022
WIESBADEN – The producer prices of industrial products were 8.6 % lower in December 2023 than in December 2022. In November 2023, the year-on-year change rate was -7.9 %. The Federal Statistical Office (Destatis) also reports that producer prices in December 2023 dropped by 1.2 % from November 2023. On an annual average basis, industrial producer prices were 2.4 % lower in 2023 than in 2022. A higher year-on-year decline was last recorded in 2009 (-4.2 % on 2008). Producer prices remained at a high level in 2023, however, following the very pronounced increases registered in 2021 (+10.5 % on 2020) and 2022 (+32.9 % on 2021).
In December 2023, 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 the December 2022, while higher prices had to be paid for consumer and capital goods.
Year-on-year decline in energy prices mainly due to lower electricity prices
Energy prices in December 2023 were down 23.5 % from December 2022. Compared with November 2023, energy prices dropped by 3.7 %. 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 35.6 % from December 2022 (-5.6 % from November 2023).
Natural gas (distribution) cost 22.4 % less in December 2023 than in December 2022 across all customer groups. Compared with November 2023, natural gas prices were down 3.5 % in December 2023.
Mineral oil products were 6.7 % less expensive in December 2023 than in December 2022, and had dropped 4.4 % from November 2023. Heating oil cost 14.4 % less than a year earlier (-6.2 % compared with November 2023). Motor fuel prices fell by 5.1 %
(-3.8 % from November 2023).
When energy prices are excluded, producer prices were 0.3 % higher than in December 2022 and were unchanged compared with November 2023.
Price decreases for intermediate goods mainly due to lower prices of metals and basic chemicals
Intermediate goods prices were 3.7 % lower in December 2023 than a year earlier, and were unchanged from the previous month.
The year-on-year decline in prices was mainly due to the price development for metals and basic chemicals. Metal prices dropped by 9.4 % from December 2022 and were 0.2 % higher than in the previous month. Basic iron, steel and ferro-alloys were 14.4 % less expensive than in December 2022. The prices of concrete reinforcing bars declined by 17.7 % year on year. Basic chemicals (total) were 10.4 % less expensive than in the same month of the previous year. Very large price decreases were recorded for fertilisers and nitrogen compounds (-37.3 % compared with December 2022). Paper and paperboard were 20.6 % less expensive than in December 2022, and the prices of prepared feeds for farm animals were down 19.2 %.
By contrast, large price increases compared with December 2022 were observed for ready-mixed concrete (+25.2 %) and cement (+23.2 %). Gravel for construction and natural sands were 17.2 % more expensive, hollow glass prices were up 15.3 %.
In December 2023, durable consumer goods were 3.0 % more expensive than a year earlier, and were down 0.1 % from November 2023.
Increase in non-durable consumer goods prices mainly due to higher food prices
In December 2023, the prices of non-durable consumer goods were 3.2 % higher than in December 2022. Compared with November 2023, they remained unchanged. Food prices increased by 2.8 % from the previous year.
Processed potatoes were 13.5 % more expensive than in December 2022, and preserved fruit and vegetables prices were up 12.4 %. Sugar cost 10.5 % more than in December 2022. Lower prices than in the same month a year earlier were recorded especially for crude vegetable oils (-28.7 %), which had seen particularly sharp price increases in 2022. Butter prices were down 17.0 % in December 2023 compared with a year earlier.
Capital goods prices rose by 3.9 % year on year, mainly driven by increases in machinery prices (+4.7 %) and in the prices of motor vehicles, trailers and semi-trailers (+3.4 %). Compared with November 2023, the prices of capital goods remained unchanged.
Changes in 2023 on an annual average basis
The year-on-year decline in producer prices for industrial products, which amounted to 2.4 % in 2023 on an annual average basis, was mainly due to the development of energy prices. These prices dropped by an average of 12.6 % from the previous year (+86.2 % in 2022 compared with 2021). Electricity cost 22.2 % less on an annual average basis in 2023 than in 2022, and natural gas (distribution) cost 9.2 % less. The prices of mineral oil products were down 10.9 % on an annual average basis compared with 2022.
When energy prices are excluded, producer prices in 2023 increased by 3.6 % on a year earlier (+14.0 % in 2022 from 2021).
Intermediate goods prices decreased by an average of 0.6 % in 2023 on 2022 (+19.4 % in 2022 compared with 2021). This was mainly attributable to the price development for metals (-7.7 %). Very large price decreases were recorded for fertilisers and nitrogen compounds (-24.2 %) and for wood (-20.7 %). Wood pellets and briquettes made from sawing by-products cost 17.4 % less, after prices had almost doubled in the previous year (+96.1 %).
In 2023, the prices of durable consumer goods were 6.7 % higher on an annual average basis than in 2022 (+9.7 % in 2022 compared with 2021). The prices of capital goods rose by 5.8 % (7.1 % in 2022 from 2021).
On average, non-durable consumer goods cost 9.2 % more in 2023 than in 2022 (+14.4 % in 2022 compared with 2021). Food prices were up 10.8 % on 2022. Particularly sharp price increases were registered for sugar (+64.1 %) and for processed potatoes and potato products (+33.5 %). Coffee cost 1.3 % more, whereas the prices of crude vegetable oils decreased by 32.4 % and butter prices by 21.3 %.
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 present results for December 2023 are the last to be published on base 2015. 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 portal also contains the Economic Pulse Monitor (only in German) tool for real-time economic monitoring.
