As a result of the war in Ukraine, German manufacturers once again raised their prices at a record pace in May. Producer prices rose by an average of 33.6 percent. “This was the highest increase compared to the same month last year since the survey began in 1949. This means that prices of commercial producers have recorded new record increases every month since December 2021,” the Federal Bureau of Statistics said.
Economists interviewed assumed an unchanged value of 33.5 percent. From April to May alone, producer prices rose by 1.6 percent.
These are regarded as precursors to the development of general inflation. The statistics show prices from the factory gate – even before the products are further processed or sold. At 7.9 percent, inflation is currently higher than since the winter of 1973/74.
Energy as a price driver
The main reason for the sharp price increases is again energy, which has cost significantly more since the beginning of the Russian invasion of Ukraine on February 24. Producer prices here were 87.1 percent higher than in May 2021. Natural gas rose by 148.1 percent. Power plants paid 241.2 percent more for natural gas than a year earlier, industrial customers 210.7 percent and resellers 168.3 percent more. Petroleum products cost 55.8 percent more than a year earlier. Heating oil was nearly twice as expensive, while motor fuels were 49.4 percent more expensive.
There were also sharp price increases for semi-finished products, especially metals, fertilizers and animal feed, as well as industrial gases and packaging materials made of wood. Food prices rose by 19.2 percent. Prices for butter (+80.2 percent), untreated vegetable oils (+68.4 percent), beef (+42.9 percent), coffee (+33.6 percent) and milk and milk products (plus 24.1 percent ).
Source: Krone
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
