The producer prices of industrial products were 4.4% lower in January 2024 than in January 2023. This is the first result following the rebasing of the index of producer prices of industrial products to the new base year 2021. In December 2023, the year-on-year change rate was -5.1% using 2021 as the base year (base year 2015: -8.6%). The modified weights within the energy sector that have been implemented in the new weighting scheme are the main reason for the difference between the new rates of change and those based on base year 2015. The Federal Statistical Office (Destatis) also reports that producer prices in January 2024 rose by 0.2% on December 2023.
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In January 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 January 2023, whereas consumer and capital goods were more expensive.
Year-on-year decline in energy prices mainly due to lower prices for natural gas
Energy prices in January 2024 were down 11.7% from January 2023. In December 2023, the rate had been -15.1% (using base year 2015: -23.5%). Compared with December 2023, energy prices were down 0.1% in January 2024. Lower natural gas prices had the biggest influence on the year-on-year rate of change for energy. Across all customer groups, gas prices declined by 19.8% from January 2023 (-6.3% from December 2023).
Electricity cost 16.3% less in January 2024 than in January 2023 across all customer groups. Compared with December 2023, electricity prices were down 2.0%.
Mineral oil product prices were 7.4% lower than in January 2023 and had dropped 0.6% from December 2023. Heating oil cost 10.7% less than a year earlier (+2.6% compared with December 2023). Motor fuel prices were 6.0% lower (+0.9% compared with December 2023).
When energy prices are excluded, producer prices were 0.5% lower than in January 2023 and were up 0.3% on December 2023.
Price decreases for intermediate goods mainly due to lower prices of metals and basic chemicals
Intermediate goods prices were 3.7% lower in January 2024 than a year earlier. Compared with the previous month, they were up 0.2%.
The year-on-year decline in prices was mainly due to the price development for metals and basic chemicals. Metal prices dropped by 8.1% from January 2023 and were 0.4% lower than in the previous month. Basic iron, steel and ferro-alloys were 11.0% less expensive than in January 2023. The prices of concrete reinforcing bars declined by 14.2% year on year. Basic chemicals (total) were 12.7% less expensive than in the same month of the previous year. Very large price decreases were recorded for fertilisers and nitrogen compounds (-38.8% compared with January 2023). Paper and paperboard were 21.6% less expensive than in January 2023, and the prices of prepared feeds for farm animals were down 18.4%.
Increase in non-durable consumer goods prices continued to slow
The prices of non-durable consumer goods were 1.1% higher in January 2024 compared with January 2023. A smaller year-on-year price increase was last recorded in May 2021 (+0.4% on May 2020). Non-durable consumer goods cost 0.1% more than in December 2023.
Durable consumer goods were 1.6% more expensive in January 2024 than a year earlier. Compared with December 2023, these prices were up by 0.3%.
Capital goods prices rose by 3.0% year on year, mainly driven by increases in machinery prices (+4.0%) and in the prices of motor vehicles, trailers and semi-trailers (+2.4%). Capital goods prices were up 0.7% compared with December 2023.
More information:
Destatis
www.destatis.de
