As a result of the war in Ukraine, German manufacturers again raised their prices massively in June – but not at record speed.
Producer prices rose by an average of 32.7% over the year, the Federal Statistical Office announced on Wednesday. In May, the increase was still 33.6% and therefore greater than at any time since the survey began in 1949.
From December 2021 to May, commercial producer prices hit a new high each month. Economists polled by R had forecast a 33.9 percent gain for June. Producer prices rose 0.6 percent from May to June.
These are considered precursors to the development of general inflation. In statistics, prices are listed right from the factory gate – even before products are processed or sold. In June, consumer prices were 7.6% higher than a year earlier. In May, the inflation rate was 7.9%, its highest level since the winter of 1973/74.
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 24 February. Producer prices here were 86.1% higher than in June 2021. Natural gas rose 141.1% and electricity 93.3%. Power plants paid 227% more for natural gas than a year ago, industrial customers 182.6% and dealers nearly 160% more. Petroleum products cost nearly 53% more than a year earlier. Light heating oil was twice as expensive as the year before (up 125.5%), while motor fuels were 42.6% higher.
There was also a rise in the prices of intermediate goods, especially metals, fertilizers and animal feed, in addition to industrial gases and wooden packaging. Food prices rose 19%. The prices of butter (increase of 74.8%), untreated vegetable oils (increase of 60.7%), coffee (increase of 31.8%) and milk and dairy products (increase of 27%) rose particularly sharp.
(APA/R)