German producer prices rose 6.7% in September, the most since March 2023

Prices charged by German producers of industrial goods rose at their fastest annual rate in three and a half years in September. The producer price index for industrial products was 6.7% higher than in September 2025, the Federal Statistical Office (Destatis) said on 20 October 2026. That was the largest year-on-year increase since March 2023, when it stood at 7.5%. Compared with August 2026, producer prices rose by 1.9%.

The index tracks what mines and quarries, manufacturers, and energy and water utilities charge for goods they make in Germany and sell on the domestic market. Its prices include every tax and charge on the products apart from VAT, which is why Destatis treats it as a gauge of price movements early in the economic chain. The survey reference date is the 15th of each month, and the base year is 2021.

Energy drove the increase

Energy was 14.9% more expensive than a year earlier and 5.8% more expensive than in August. Destatis attributed the jump in mineral oil product prices to the conflict in Iran and the Middle East: they were 51.3% higher than in September 2025 and 8.2% higher than in August. Heating oil cost 91.8% more than a year earlier, motor fuels 48.6% more and naphtha 53.8% more.

Natural gas (distribution) was 15.0% dearer across all consumer groups and electricity 8.2%, while district heating was 0.5% cheaper. Excluding energy, producer prices rose by 3.2% on the year and by just 0.1% on the month – so the gap to the headline rate of 6.7% comes from energy prices.

Metals and chemicals also up, food down

Intermediate goods were 6.4% more expensive than a year earlier, mainly because of metals, which rose 14.0%. Copper and semi-finished copper products were up 31.4% and precious metals 26.5%. Basic chemicals cost 11.3% more and fertiliser 8.9% more, while pellets, briquettes and logs were 38.5% dearer.

Capital goods such as machinery and vehicles rose more modestly, by 2.4%. Food went the other way: non-durable consumer goods were 1.8% cheaper than a year earlier, with food prices down 4.1%. Butter cost 34.8% less than in September 2025, pork 13.9% less and beef 9.9% less, while vegetable oils were 14.5% dearer.

The same pressure further down the chain

The energy shock shows up at every stage. Wholesale prices were 8.7% higher in September than a year earlier, Destatis reported on 14 October, the biggest rise since February 2023; mineral oil products in wholesale trade cost 48.8% more. Consumer prices rose 3.3% on the year in September, up from 2.9% in August and the highest rate since December 2023. Motor fuel was 37.1% dearer for consumers and heating oil 74.9%.

Some relief has started. A renewed cut in energy tax, particularly on motor fuels – the so-called fuel discount (Tankrabatt) – took effect on 1 October 2026, so it was not yet reflected in September's consumer prices, Destatis said. Electricity, natural gas and district heating were cheaper for consumers than a year earlier, which the statistics office attributes in part to government measures in force since the start of the year.

On 16 October the Bundesrat, the chamber of the 16 states, also approved an ordinance releasing 19.5 million barrels of crude oil and oil products from Germany's emergency stocks. That is Germany's 4.9% share of a decision by G7 leaders on 2 October to release in full the 400 million barrels pledged in March 2026. To do so, the national oil stockholding agency will in future only have to hold reserves equal to 82 days of imports instead of 90.