In May, producer prices rose by almost 34 percent compared to the same month last year. This is the strongest increase since 1949. The price increase is primarily related to one development.
In Germany, manufacturer prices continue to rise at record speed. Producer prices increased by 33.6 percent in May compared to the same month last year, as the Federal Statistical Office announced on Monday in Wiesbaden.
That’s the sharpest rise since surveys began in 1949. Since last December, the prices manufacturers receive for their goods have seen record increases every month. In a monthly comparison, producer prices increased by 1.6 percent.
The development is still being driven by energy prices, which rose by around 87 percent year-on-year. Natural gas was around 148 percent more expensive than a year ago. Power plants even paid 241 percent more for natural gas, industrial customers almost 211 percent. Electricity cost a good 90 percent more than a year earlier, mineral oil was almost 56 percent more expensive. There were also high price increases for many intermediate goods such as metals, fertilizers and animal feed, as well as industrial gases and packaging materials made of wood.
Producer prices also affect consumer prices, on which the European Central Bank (ECB) bases its monetary policy. In both Germany and the eurozone, inflation is well above the ECB’s medium-term target of two percent. After a long hesitation, the ECB wants to brace itself against inflation, but it is lagging behind other central banks.
Source: Stern
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
