German Producer Prices June 2026: -0.3% Month-over-Month

Excluding energy, producer prices rose by 2.4 percent compared to the same month a year earlier, and by 0.2 percent compared to May. The increase in producer prices compared to the same month a year earlier is primarily attributable to higher prices for intermediate goods (plus 5.1 percent). Consumer goods, by contrast, were cheaper (minus 2.2 percent).

Energy and mineral oil products as price drivers

Energy in June was 0.4 percent more expensive than in the same month a year earlier, although on a monthly basis energy prices fell by 1.8 percent, the Federal Office further reported. Under a framework agreement between the USA and Iran, however, oil prices had fallen noticeably in June. Prices for fuels nevertheless rose by 12.0 percent year-over-year, while prices for light heating oil climbed by 23.6 percent.

The same picture emerges for mineral oil products: due to the hostilities in Iran and the Middle East, prices for mineral oil products rose by 23.7 percent year-over-year, although they fell by 7.4 percent compared to May. Naphtha cost 38.1 percent more than in June 2025.

Comparison with the previous month and geopolitical backdrop

In May, the increase had been significantly stronger: according to the agency, a war between the USA and China as well as a blockade of oil transports through the Strait of Hormuz had made the commodity more expensive at that time, so that the annual rate reached a level not seen since May 2023. With the situation calming down in June, the trend reversed - at least on a monthly basis.

Outlook on monetary policy

The European Central Bank (ECB) is aiming for an inflation rate of two percent for the entire currency area over the medium term. With an annual rate of 1.8 percent for producer prices, Germany thus remains close to this target value, even though the underlying price dynamics - driven by intermediate goods and energy sources - vary considerably.

The data were published by the Federal Statistical Office on July 20, 2026 and previously distributed by Dow Jones Newswires (Dow Jones Newswires July 20, 2026 02:11 ET (06:11 GMT)). This had also been expected by analysts. For the coming months, attention now turns to the question of whether the easing in energy and commodity markets will continue and be reflected accordingly in consumer prices.

Overall, the June figures show that price pressure at the manufacturer level has eased, without the year-over-year dynamics having disappeared. While the monthly rate met expectations and points to a gradual calming, the year-over-year comparison remains elevated due to base effects from the conflicts surrounding Iran and in the Middle East, as well as between the USA and China.