The pillar of the German economy has a problem. Deflation has deepened


The prices of German industry in May 2025 were 1.2 percent. Lower than in May 2024, in April, the annual change rate was -0.9 percent, so you can talk about accelerating deflation tendencies. Counting a month to month, there was a drop in prices by 0.2 percent.
The main reason for the decline in prices year -on -year were energy prices, which decreased by 6.7 percent, including mainly electricity, lower by as much as 8.1 percent. year to year – explains Destatis. Natural gas got cheaper by 7.1 percent yard, and car fuel prices fell by 6.5 percent This may result both from supply (lower global oil and gas prices) and a decrease in demand in the economy.
Indirect goods were also cheaper than a year ago, although only 0.2 percent. Metal prices decreased by 1.3 percent yard, including iron rates by 5.2 percent, and copper by 5.7 percent Armaments steel was more expensive by 1.7 percent, which may be related to investments in defense. Wood (+5 percent) was more expensive, including primarily coniferous timber (+13 percent of the yard), it also increased paper and paper products (+3.2 percent).
Consumer goods (+3.6 percent yaws), permanent consumer goods (+1.6 percent), as well as investment goods (+1.9 percent). Car prices and parts for them increased by 1.3 percent. yard, machines by 1.9 percent, and food by 4.2 percent Coffee (+41.2 percent yard), beef (+35.7 percent), the most expensive of food, butter (+21.6 percent) and vegetable oils (+10.3 percent). He stood up sugar (-39.9 percent of RDR) and pork (-4.5 percent).




