High energy prices are driving producer prices up further.
(Photo: IMAGO/Michael Gstettenbauer)
Wiesbaden In Germany, the prices for commercial products are again rising at record speed. Fueled by high energy prices, producer prices rose by 37.2 percent in July compared to the same month last year, as reported by the Federal Statistical Office in Wiesbaden on Friday.
It was the sharpest rise in a year since the survey began in 1949. Inflation had slowed somewhat in June, when the rate of change was 32.7 percent. Compared to the previous month, producer prices increased by 5.3 percent in July. This was also a record increase.
The development is still being driven by energy prices, which rose by 105.0 percent year-on-year. Natural gas was around 163.8 percent more expensive than a year ago. Power plants even paid 234.7 percent more for natural gas, industrial customers 194.7 percent. Within a year, electricity prices rose by 125.4 percent and petroleum products by 41.8 percent.
There were also high price increases for many intermediate goods, especially metals and basic chemicals such as fertilizers and nitrogen compounds. Producer prices affect consumer prices.
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Producer prices are considered to be the forerunners for the development of general inflation. In the statistics, the prices are listed from the factory gate – even before the products are further processed or sold. In July, consumer prices were 7.5 percent higher than a year earlier, after the inflation rate had reached 7.9 percent in May, the highest level since the winter of 1973/1974.
The fuel discount and nine-euro ticket are currently driving down inflation for consumers, but this state aid will expire at the end of the month. Experts are therefore anticipating higher inflation rates of around nine percent in the autumn.
More: Survey – The first consumers are putting their savings plans on hold because of high inflation