Producer prices in Germany dropped by 1.3% year-on-year in June 2025, following a 1.2% decline in May, in line with market expectations. This marked the fourth consecutive month of falling producer prices and the sharpest drop since September 2024. The overall decrease was largely driven by lower energy costs, which fell 6.4%. Within the energy sector, key contributors included electricity (-8.8%), mineral oil products (-7.7%), natural gas (-6.9%), heating oil (-6.4%), and motor fuel (-4.2%). Additionally, prices for intermediate goods declined by 0.4%. In contrast, prices rose for non-durable consumer goods (3.6%), durable consumer goods (1.7%), and capital goods (1.7%). Excluding energy, producer prices increased by 1.3%, matching the pace seen in May. On a monthly basis, the producer price index edged up 0.1% in June, slightly exceeding market forecasts of no change and rebounding from May’s 0.2% decline, marking the first increase in seven months.