Wiesbaden In Germany, prices at manufacturer level continue to rise rapidly, but no longer at record speed. Producer prices rose by 32.7 percent in June compared to the same month last year, as the Federal Statistical Office announced on Wednesday. That’s slightly less than the previous month’s record gain of 33.6 percent, which was the sharpest rise since the surveys began in 1949. In a monthly comparison, producer prices increased by 0.6 percent.
Energy prices are mainly responsible for the price increase. In June, these were around 86 percent higher than a year ago. Natural gas was a good 141 percent more expensive. Electricity cost around 93 percent more.
There were also high price increases for intermediate goods, especially metals, fertilizers and animal feed, as well as industrial gases and packaging materials made of wood. Food prices rose by 19 percent.
>>Read here: That means the energy price shock for consumers and companies
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Producer prices affect consumer prices, which the European Central Bank bases its monetary policy on. In both Germany and the eurozone, inflation is well above the ECB’s medium-term target of two percent.
After a long hesitation, the ECB wants to fight inflation and on Thursday it will raise its key interest rates for the first time in eleven years.
More: Inflation and the Italian crisis: The ECB leadership now needs courage and speed