Germany's producer prices rise 1% in May 2023: Destatis

21 Jun '23

2 min read

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Insights

Germany's producer price index for industrial goods saw a modest 1 per cent YoY rise in May 2023, marking the smallest increase since Jan 2021, according to Destatis.
The country's non-durable consumer goods were key influencers in May 2023, increasing 10.1 per cent YoY.
Durable goods also rose, while energy prices decreased by 3.3 per cent.

Germany's producer price index for industrial products saw a rise of 1 per cent in May 2023 compared to the same month in the previous year, marking the smallest increase of 0.9 per cent since January 2021, according to the Federal Statistical Office (Destatis). This represents a significant moderation from April 2023 when the increase was 4.1 per cent. Compared with the preceding month, April 2023, the overall index decreased by 1.4 per cent in May 2023.

The largest contributors to the year-on-year (YoY) increase in the overall index were capital goods and non-durable consumer goods. Prices for non-durable consumer goods rose by 10.1 per cent in May 2023 compared to May 2022, with a 0.1 per cent increase compared to April 2023.

Durable consumer goods prices increased by 7.9 per cent YoY in May 2023, as per Destatis.

However, prices for intermediate goods saw a decline, decreasing by 2.3 per cent compared to May 2022, and falling by 1.1 per cent compared to April 2023.

Energy prices saw a notable decrease of 3.3 per cent YoY in May 2023, and a 3.5 per cent decrease compared to the previous month. Energy prices had soared following the Russian attack on Ukraine in February 2022 but have since dropped by 34.3 per cent from September 2022.

Excluding energy, the overall index was up 3.2 per cent on May 2022, though it was down 0.4 per cent compared to April 2023. The data shows a significant moderation in producer price inflation, likely reflecting the easing of supply chain issues and a cooling global commodity market.

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