Decline in Producer Prices August 2025: A 2.2% Drop Compared to the Previous Year - Notable Drop in Energy Prices
In August 2025, producer prices for industrial products experienced a 0.5% decline compared to the previous month, according to the latest data. This dip was primarily due to lower energy prices, which saw an 8.5% decrease compared to the same month the previous year.
However, not all sectors followed this downward trend. Coffee, for instance, saw a significant increase of 33.1% compared to the previous month, making it one of the costliest commodities in August.
Consumer goods also saw a 3.3% increase year-on-year, although they were unchanged compared to July 2025. Conversely, some essential goods such as pork, feed for livestock, and wheat flour became cheaper, with decreases of 1.9%, 2.4%, and 3.5% respectively compared to August 2024.
The prices for raw materials and semi-finished products also saw a drop, with chemical raw materials, raw iron, steel, and ferroalloys all becoming cheaper by 2.2%, 6.4%, and 1.1% respectively compared to the previous year. This decline was attributed to weakened demand due to the summer lull, factory shutdowns, and holidays, extended traditional summer breaks by many steel plants, and restrained purchasing from key markets like Turkey.
Energy prices also played a significant role in the decrease, with electricity, natural gas, and district heating all becoming cheaper by 10.8%, 11.0%, and 1.8% respectively compared to August 2024.
Despite these decreases, some sectors saw price increases. Durable goods, wood and wood and cork products, glass and glassware, and metal all became more expensive year-on-year, with increases of 1.7%, +4.4%, +2.9%, and 1.1% respectively.
Food prices also saw a 4.1% increase year-on-year, although they were unchanged compared to July 2025. Some specific food items, such as butter, saw a 5.3% increase compared to the previous year.
However, there were some notable exceptions. Sugar, for instance, became significantly cheaper, with a decrease of 36.8% compared to July 2025. Reinforcing steel also became cheaper, with a 2.7% decrease compared to the previous year.
In contrast, sawlogs saw a 12.4% increase compared to August 2024, and softwood sawlogs became 1.3% more expensive. Hollow glass was the only product to buck the trend, becoming 4.2% cheaper compared to the previous year.
Overall, August 2025 saw a mixed picture for producer prices, with some sectors experiencing decreases while others saw increases. The decline in energy prices was a key factor in the overall decrease, but other factors such as weakened demand and factory shutdowns also played a role.
