FX.co ★ German Producer Inflation Hits 3-1/2-Year High

Germany’s producer prices rose 6.7% year-on-year in September 2026, the sixth consecutive month of increases and an acceleration from August’s 4.6%. This was the fastest annual rise in producer prices since March 2023, largely driven by higher energy costs (up 14.9% vs. 8.3% in August), reflecting increased prices for mineral oil, naphtha, heating oil, and motor fuels.

Prices for intermediate goods also picked up, rising 6.4% compared with 6.1% in August, mainly due to sharp increases in metals, copper, and semi-finished copper products. Capital goods prices were up 2.4%, supported by higher prices for machinery and motor vehicles, while prices for durable consumer goods climbed 2.2%. In contrast, prices for non-durable consumer goods fell 1.8%.

Excluding energy, producer prices increased 3.2% year-on-year. On a monthly basis, producer prices rose 1.9% in September, after a 1.1% gain in August, marking the strongest monthly increase in six months and surpassing market expectations of a 0.8% rise.