German producer inflation rises 2.2% in May, highest in 3 years

Germany’s producer prices rose 2.2% year-on-year in May, marking the strongest annual increase in three years, official data showed on Friday.

The figure came below market expectations of a 2.5% annual increase, following 1.7% in April.

Producer prices of industrial products also rose 0.3% month-on-month in May, according to the Federal Statistical Office, Destatis.

The annual increase was mainly driven by a 4.2% rise in intermediate goods prices, while energy prices were up 2.5% from a year earlier.

Excluding energy, producer prices rose 2.3% year-on-year and 0.7% month-on-month in May.

Energy prices declined 0.4% from April, despite remaining above last year’s level. Mineral oil products were 34.9% more expensive than in May 2025, although they fell 2.5% from April.

Destatis said prices of mineral oil products stayed roughly at April’s high level due to the ongoing tension in the Middle East.

Naphtha prices jumped 60.9% annually, heating oil rose 52.8%, and motor fuels increased 24.2%.

Natural gas prices, however, fell 1.3% year-on-year, while electricity prices dropped 4.6% and district heating prices declined 0.5%.

Intermediate goods prices were supported by higher metal prices, which rose 11.1% annually. Precious metals surged 59.4%, while copper and semi-finished copper products increased 24.5%.

Prices of basic chemicals rose 10.4% year-on-year and 5.8% from April, while fertilizers were 13.2% more expensive than a year earlier.

Capital goods prices increased 2% annually, with machinery prices up 1.9% and prices for motor vehicles, trailers and semi-trailers up 1.3%.

Durable consumer goods prices also rose 2% year-on-year.

By contrast, non-durable consumer goods prices fell 1.7% from a year earlier, led by a 3.6% decline in food prices. Butter prices plunged 40%, while pork prices fell 16.7%.