Press release No. 160 of 19 April 2024 Producer prices in March 2024: -2.9% on March 2023

Press release No. 160 of 19 April 2024

Producer prices of industrial products (domestic sales), March 2024
-2.9% on the same month a year earlier
+0.2% on the previous month

WIESBADEN- The producer prices of industrial products were 2.9% lower in March 2024 than in March 2023. In February, the year-on-year change rate was -4.1%. The Federal Statistical Office (Destatis) also reports that producer prices in March 2024 were up 0.2% on February 2024.

In March 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 March 2023, whereas higher prices had to be paid for consumer and capital goods.

Sharp declines in the prices of natural gas (distribution) and electricity

Energy prices in March 2024 were down 7.0% from March 2023. Compared with February 2024, energy prices remained unchanged. Lower prices for natural gas and electricity had the biggest influence on the year-on-year rate of change for energy. Across all customer groups, gas prices declined by 15.4% from March 2023 (-0.6% from February 2024). Electricity cost 12.6% less in March 2024 than in March 2023 across all customer groups. Compared with February 2024, electricity prices increased by 0.1%.

Mineral oil products cost 1.0% less than in March 2023. Compared with February 2024, the prices of mineral oil products were up 0.7%. Heating oil prices increased by 3.6% from a year earlier (-2.5% compared with February 2024). The prices of motor fuels were unchanged from March 2023 (-0.4% compared with February 2024).

Excluding energy prices, producer prices were 0.8% lower than in March 2023 and 0.3% higher than in February 2024.

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

Intermediate goods prices were 3.7% lower in March 2024 than a year earlier. Compared with the previous month, they increased slightly by 0.1%.

The year-on-year decline in prices was mainly due to the price development for metals and basic chemicals. Metal prices dropped by 6.6% compared with March 2023 and were 0.3% higher than in the previous month. Basic iron, steel and ferro-alloys were 10.3% less expensive than in March 2023. The prices of concrete reinforcing bars declined by 8.7% year on year. Basic chemicals (total) cost 9.0% less than in the same month of the previous year. Very large price decreases were recorded for fertilisers and nitrogen compounds (-27.2% compared with March 2023). The prices of synthetic rubber dropped by 15.7% compared with March 2023. Prepared feeds for farm animals cost 19.6% less than a year earlier and the prices of paper and paperboard were down 15.9%.

By contrast, price increases compared with March 2023 were observed particularly for mortar (+5.5%), lime (+5.4%) and mortar products for construction (+4.9%). Stone, gravel, sand, clay and kaolin cost 8.0% more year on year, including gravel for construction and natural sands with prices up 8.5%.

Slight price increase for non-durable consumer goods

Non-durable consumer goods cost 0.3% more in March 2024 than in March 2023. Compared with February 2024, the prices of non-durable consumer goods were up 0.6%.

Food prices in March 2024 were slightly down (-0.3%) from March 2023 (+0.9% month on month). Lower prices than in the same month a year earlier were recorded especially for crude vegetable oils (-13.3%) in March 2024. Milk prices dropped 11.0%, coffee cost 7.3% less than in March 2023, while confectionery was 16.5% more expensive year on year. Butter cost 13.2% more than a year earlier. Compared with February 2024, butter prices increased by 2.5%.

Durable consumer goods were 1.0% more expensive in March 2024 than in March 2023. Compared with February 2024, the prices of durable consumer goods increased by 0.1%.

Capital goods prices rose by 2.8% year on year, mainly driven by increases in machinery prices (+3.0%) and in the prices of motor vehicles, trailers and semi-trailers (+2.2%). Capital goods prices were up 0.2% compared with February 2024.

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. As a general rule, the base year is changed 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 products (only in German) is available in the "Revisionen in der Preisstatistik" (only in German) section on the "Preisstatistik im Überblick" (only in German) page of the Federal Statistical Office's website.

Methodological notes:

The producer price index for 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 15^th 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 also 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.

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