The Federal Statistical Office has reported a 4.1% increase in the index of producer prices for industrial products in Germany in April 2023 compared to the same month in the previous year. This marks the smallest increase since April 2021 when the growth rate stood at 5.2%. In comparison, the increase in March 2023 was 6.7%. Additionally, the overall index rose by 0.3% in April 2023 compared to the previous month of March 2023, marking the first increase since September 2022.
The primary driver behind the increase in producer prices can be attributed to capital goods, which saw a rise of 6.8% compared to April 2022. In March 2023, prices in this category increased by 0.6%. Specifically, machinery experienced a significant price surge of 8.6% compared to the same month last year and a 0.6% increase compared to March 2023. Similarly, prices for vehicles and parts rose by 5.6% compared to April 2022 and 0.9% compared to March 2023. Steel and light metal fabricated products also recorded price increases of 5.3% compared to April 2022 and 0.4% compared to March 2023.
The growth in prices of non-durable consumer goods can mainly be attributed to increasing food prices. Prices for non-durable consumer goods were 11.4% higher in April 2023 compared to the previous year, with a 0.4% increase from March 2023. Food prices, in particular, saw a significant rise of 13.6% compared to the previous year, driven by sharp increases in the prices of sugar (+88.9% compared to April 2022), processed and preserved potatoes (+40.5%), and swine meat (+18.5%). The prices of milk and cream increased by 23.3% compared to a year earlier but fell by 0.7% compared to March 2023. However, butter (-22.4% compared to April 2022) and crude vegetable oils (-35.7% compared to April 2022) were cheaper than in the same month last year.
Durable consumer goods prices also witnessed an 8.8% increase in April 2023 compared to a year earlier, with a 0.2% increase from March 2023. This growth was primarily driven by price developments in furniture (+10.2% compared to April 2022) and domestic appliances (+9.5% compared to April 2022).
Energy prices saw a slight increase compared to the same month last year and the previous month. In April 2023, energy prices were only 2.8% higher than in April 2022, with a 1.0% increase from March 2023. This marks the first month-on-month increase since September 2022. The significant increase in energy prices shortly after the start of the Russian attack on Ukraine in March 2022, coupled with price declines in recent months, led to a comparatively moderate year-on-year increase. Natural gas prices, in particular, saw a rise of 10.8% compared to April 2022 across all customer groups and a 1.4% increase from March 2023. However, electricity prices fell by 2.9% compared to April 2022 but increased by 1.5% compared to March 2023.
Mineral oil products witnessed a decrease of 15.0% in prices compared to April 2022, with a 0.5% decline from March 2023. Light heating oil prices were 24.9% cheaper in April 2023 than a year earlier, while prices for motor fuels fell by 13.4% compared to April 2022.
Excluding energy, the overall index experienced a 4.8% increase compared to April 2022, with a 0.1% increase from March 2023.
The increase in prices for intermediate goods can be attributed to prices for glass, ceramics, and processed stones, which saw a significant rise of 20.3% compared to April 2022. However, compared to the previous month, prices for intermediate goods fell by 0.4%. Cement prices experienced substantial growth of 42.5% compared to April 2022, while wood chip prices increased by 13.8% compared to the same month last year but fell by 11.7% compared to March 2023. Household and sanitary goods, as well as toilet paper pulp and paper, witnessed a price increase of 21.9%.
Metals, on the other hand, were cheaper by 9.0% compared to April 2022, with a 0.1% decrease from the previous month. Metallic steel and ferroalloys experienced a price decrease of 15.4% compared to April 2022, while prices for reinforcing steel in bars or coils fell by 35.2% year-on-year.
The index of producer prices of industrial products measures the price changes of industrial products produced and sold within Germany by domestic enterprises in the sectors of mining and quarrying, manufacturing, and energy and water supply. The results consider all charges and taxes on goods except value-added tax and provide insight into price developments at the initial stages of the value-added chain.
The index of producer prices of industrial products will transition to the new base year of 2021 starting from January 2024, with the first results based on the new base year set to be published in March 2024. The results released by the Federal Statistical Office also account for the effects of the brake on electricity and gas prices, effective since January 2023. The revised results for January to March 2023, which consider the brake on prices, were published on May 15, 2023.