Germany’s PPI fell -0.1% MoM in July 2025 and was down -1.5% YoY, deepening from the -1.3% YoY decline in June as energy and intermediate goods continued to weigh on prices.

• Energy prices were -6.8% YoY (+0.1% MoM), with natural gas down -8.6% YoY and electricity down -7.8% YoY, reflecting persistent softness in energy costs.

• Intermediate goods prices fell -0.9% YoY and -0.3% MoM, led by declines in basic chemicals (-2.6% YoY) and metals (-2.2% YoY).

• By contrast, non-durable consumer goods rose +3.5% YoY (-0.2% MoM), driven by strong increases in food prices (+4.1% YoY), particularly coffee (+38.4% YoY) and beef (+38.0% YoY).

• Capital goods and durable consumer goods rose 1.8% YoY and 1.9% YoY, respectively, indicating ongoing pricing strength in machinery and manufactured goods.

• Excluding energy, PPI increased +1.0% YoY but declined -0.2% MoM, suggesting that most of the annual weakness is still concentrated in energy-related categories.