Producer prices in Germany rose 1.7% year-on-year in April 2026, recovering from a 0.2% decline in March and marking the first increase since February last year. The reading came in above market forecasts of 1.5% and represented the highest producer inflation since May 2023, mainly driven by higher intermediate goods prices (2.6%) and energy (2.0%), with a sharp rise in mineral oil prices (35.5%) due to the ongoing Middle East conflict. Prices also rose for capital goods (2.0%), boosted by higher machinery costs, as well as motor vehicles, trailers, and semi-trailers, while durable consumer goods climbed 1.9%. By contrast, prices for non-durables fell 1.0%, mainly due to cheaper food, particularly butter and pork. Excluding energy, producer prices rose 1.6%. On a monthly basis, producer prices climbed 1.2%, easing from a 2.5% rise in March, which was the largest increase since August 2022 but above the expected 1.0% gain, marking the second straight month of increase.