The Sueddeutsche Zeitung citing the Federal Statistical Office reports an average increase in producer prices of 37.2 per cent, the highest increase compared to the same month last year. High energy costs were the culprit.
German manufacturers raised their prices at a record pace in July. Manufacturers’ prices rose by an average of 37.2 per cent, mainly because of expensive energy resources.
“This was the highest increase compared to the same month last year since the survey began in 1949,” the Federal Statistical Office said.
Economists polled by Reuters news agency had expected a drop to 32.0 per cent after the figure stood at 32.7 per cent in June. Producer prices rose 5.3 per cent from June to July.
“This is also the highest increase from the previous month since the survey began,” the report said. Producer prices are considered a precursor to the development of general inflation.
The statistics show prices even before products undergo further processing or sale. In July, consumer prices were 7.5% higher than a year earlier, after an inflation rate of 7.9% in May, the highest level since the winter of 1973-1974.
The fuel discount and the nine-euro ticket are currently reducing inflation for consumers, but this state aid expires at the end of the month. Therefore experts expect higher inflation rates in the autumn. The main reason for the sharp rise in producer-level inflation is energy, which has risen significantly since the start of Russia’s special operation in Ukraine.
Natural gas has risen by 163.8 per cent and electricity by 125.4 per cent. Petroleum products are 41.8 per cent more expensive than a year earlier. Light fuel oil more than doubled in price compared to last year (+107.9 per cent) and motor fuel rose by 31.6 per cent. There was also a high increase in prices of intermediate goods, especially metals, fertilisers and animal feed, as well as industrial gases and wood packaging materials. Food prices rose by 21 per cent.
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