At 4.5 percent, the inflation rate is currently higher than it has been since 1993.
(Photo: dpa)
Berlin The sales prices in German wholesalers rose more sharply in October because of expensive raw materials and intermediate products than they have been in over 47 years. They were 15.2 percent higher than a year earlier, as the Federal Statistical Office announced on Friday.
The last time there was a stronger increase was in March 1974, when prices rose by 15.8 percent in the wake of the first oil crisis. As a result, the upswing accelerated again significantly: in September the rate of inflation was still 13.2 percent and in August it was 12.3 percent.
The development is an indicator for future inflation tendencies, since wholesaling is the hinge between manufacturers and end customers. At 4.5 percent, the inflation rate is currently higher than it has been since 1993 and, according to experts, should continue to move towards five percent by the end of the year.
In their annual report for the federal government, the economic wise men expect an inflation rate of 3.1 percent for the year to come. It is expected to fall to 2.6 percent in 2022. In October, petroleum products were once again among the strongest price drivers in wholesale.
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They cost an average of 54.7 percent more than a year earlier, as the statisticians determined. Old and residual materials even went up by 81.2 percent, ores, metals and metal intermediate products by 60.9 percent.
The prices for raw and sawn timber (plus 48.4 percent) as well as grain, raw tobacco, seeds and animal feed (plus 26.8 percent) have also risen significantly. Due to the rapid recovery of the global economy from the Corona recession, prices for many products rapidly. Strong growth is predicted this year in particular for the world’s largest economies, the USA and China, especially since major economic stimulus programs have been launched there.
More: Why prices could rise in Europe just like in the USA