If manufacturers raise or lower their prices, this usually has a delayed effect, at least in some cases, in private households.
(Photo: dpa)
Wiesbaden In Germany, the upward trend in prices at the manufacturer level continued to weaken, albeit from a high level. In February, producer prices rose by 15.8 percent year-on-year, as the Federal Statistical Office announced on Monday in Wiesbaden. In August and September, the prices manufacturers receive for their goods rose at a record rate of 45.8 percent each. Since then, inflation has been declining.
The statisticians restricted 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, which will only be implemented from March. The price indices could therefore initially only be calculated for the reporting months of January and February without taking into account the electricity and gas price brake.
Energy prices are still the main driver of the movements. Year-on-year, they are still 27.6 percent higher, but they are down 1.4 percent from the previous month. Without energy, producer prices would have risen by 10.2 percent year-on-year and thus less than with energy included. In addition to energy, food and various intermediate goods were significantly more expensive than a year ago.
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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