Producer prices in Germany fell 0.2% year-on-year in March 2026, easing from a 3.3% decline in February and marking the mildest drop since the current declining trend began in March last year. The softer annual decline came as energy prices fell at a slower pace (-3.2%), with lower natural gas and electricity costs partly offset by sharp increases in mineral oil products, reflecting the impact of tensions in the Middle East. Prices of non-durable consumer goods also declined (-0.3%), mainly due to cheaper food, particularly butter and pork. Meanwhile, prices for capital goods (1.9%) and durable consumer goods (1.9%) continued to rise, alongside intermediate goods (1.5%) primarily due to higher costs of metals and wood products. Excluding energy, producer prices rose 1.3%. On a monthly basis, producer prices jumped 2.5%, the largest increase since August 2022 and well above the expected 1.4% rise, driven primarily by a surge in energy costs (7.5%).