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Germany's Producer Prices Plunge Amid Energy Cost Drop

9/20/2025

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Story summary
  • In August 2025, Germany's producer prices dropped by 2.2% year-on-year, marking six months of decline, primarily due to an 8.5% decrease in energy costs.
  • Latvia's industrial producer prices increased by 0.5% year-on-year, while domestic market prices fell by 1.1%.
  • German steel production fell by 10.5% year-on-year, totaling 2.58 million tons, continuing an eight-month decline.
  • Pig iron production in Germany decreased by 11.6% year-on-year.
  • Despite a rise in steel output in 2024, Germany's smelting volumes have remained below 40 million tons for three years, indicating recession levels.