The reason for the relaxation is the price brake for electricity and gas that has been in effect since January, but which has only been implemented since March.
(Photo: dpa)
Wiesbaden In Germany, the upward pressure on prices at the manufacturer level has continued to weaken from a high level. In March, producer prices rose by 7.5 percent year-on-year, as the Federal Statistical Office announced on Thursday in Wiesbaden.
In the past year, the prices that manufacturers receive for their goods have increased at times at a record rate of 45.8 percent. Since then, inflation has been declining. However, the statisticians limited that the results with regard to electricity and gas prices are still provisional.
The background is the price brake for electricity and gas that has been in force since January, but which has only been implemented since March. Since in March not all utility companies required to report had reported data taking into account the price brake, the effect of the price brake could only be partially taken into account.
Energy prices are still primarily responsible for the overall development. Year-on-year, they are still 6.8 percent higher, but they are down 7.6 percent from the previous month. Natural gas was still significantly more expensive in a year-on-year comparison, while electricity prices stagnated.
Mineral oil products were significantly cheaper compared to the same month of the previous year, but they had risen drastically a year ago because of the Ukraine war. Food and intermediate goods again rose in price, in some cases significantly.
Producer prices capture producer-level price pressure by reflecting producer selling prices. The development is also having an impact on consumer prices, on which the European Central Bank (ECB) bases its monetary policy. In view of the high inflation, the ECB has, after some hesitation, raised its key interest rate significantly.
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