Producer prices climb again at record speed

Berlin As a result of the Ukraine war, German manufacturers again increased their prices at record speed in May. Producer prices rose by an average of 33.6 percent. “This was the highest increase compared to the same month last year since the survey began in 1949,” said the Federal Statistical Office on Monday.

“This means that commercial producer prices have recorded new record increases every month since December 2021.” Economists surveyed by Reuters had assumed an unchanged value of 33.5 percent. From April to May alone, producer prices rose by 1.6 percent.

These are regarded as precursors 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. At 7.9 percent, the inflation rate is currently higher than it has been since the winter of 1973/1974.

The main reason for the sharp rise in prices is again energy, which has cost significantly more since the start of the Russian invasion of Ukraine on February 24th. Here, producer prices were 87.1 percent higher than in May 2021.

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Natural gas increased in price by 148.1 percent. Power plants paid 241.2 percent more for natural gas than a year earlier, industrial customers 210.7 percent and resellers 168.3 percent more. Petroleum products cost 55.8 percent more than a year earlier. Light heating oil was almost twice as expensive, while 49.4 percent more was required for fuel.

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 increased by 19.2 percent.
  • The prices for butter (+80.2 percent), untreated vegetable oils (+68.4 percent),
  • beef (+42.9),
  • coffee (+33.6)
  • and milk and milk products (+24.1).

More: Habeck wants to take gas power plants off the grid

source site-18