Sawn softwood cost 124 percent more than a year earlier.
(Photo: dpa)
Berlin The German manufacturers raised their prices more sharply in August than they have done in almost 47 years. The producer prices of commercial products rose by 12.0 percent compared to the same month last year, as the Federal Statistical Office announced on Monday.
The last time there was a bigger plus was in December 1974, when prices rose by as much as 12.4 percent due to the first oil crisis. Economists polled by Reuters had only expected 11.4 percent after the rate of increase in July was 10.4 percent. In addition to energy, primary products such as wood and steel became more expensive.
The producer prices are considered to be a leading indicator for the development of inflation. In the statistics, the prices are kept ex-factory – i.e. before the products are further processed or go on sale.
You can use it to give an early indication of the development of consumer prices. At 3.9 percent, the inflation rate is currently higher than it has been since 1993 and, according to economists, could move towards five percent in the coming months.
Top jobs of the day
Find the best jobs now and
be notified by email.
“The main reason for the increase in commercial producer prices compared to August 2020 was the price development for energy,” explained the statisticians. It went up by an average of 24.0 percent.
Intermediate goods were 17.1 percent more expensive. Sawn softwood cost 124 percent more than a year earlier. Secondary raw materials (+104 percent), wooden packaging (+89.4 percent) and reinforcing steel in bars (+87.2 percent) also cost considerably more.
More: Estimate confirmed – inflation rate in the euro zone reaches ten-year high