Consumers should soon feel the inflation in their wallets even more. Because the producer prices for many foods and other goods continue to rise sharply, as current figures show.
Inflation has skyrocketed, and some products have already become noticeably more expensive. But it should be even more painful for consumers, as current figures show. Accordingly, the so-called producer prices in May rose by an average of 33.6 percent compared to the previous year. This was “the highest increase compared to a month in the previous year since the survey began in 1949,” said the company. The record value from April (plus 33.5 percent) was thus again slightly exceeded.
The producer prices are the prices that manufacturers charge their commercial customers in further processing and trade. Since higher producer prices usually end up in the shops, they are used as an indicator for the further development of consumer prices. The inflation rate, which was already 7.9 percent recently, could therefore continue to rise.
Expensive energy, expensive food
The main reason for the exploding producer prices are the high energy costs. They not only make petroleum products, heating oil and fuels more expensive. Energy is required for the production of almost all goods. Many consumables and consumer goods that are ultimately sold in the shop are also becoming more expensive.
Producer prices for food were on average 19.2 percent higher in May than in May 2021. Some food prices rose particularly sharply: butter was 80.2 percent more expensive than in the previous year (and 7.2 percent more expensive than in April), untreated vegetable oils cost 68.4 percent more. Beef costs 42.9 percent more and pork 24.1 percent. The price increase for coffee is 33.6 percent, for milk and milk products 24.1 percent. Apart from groceries, the increase in commercial prices for furniture is also noticeable (plus 11.9 percent).
The development of the so-called intermediate goods also shows why expensive energy makes the end products in the shop so expensive. Fertilizers and nitrogen compounds were 110.9 percent more expensive in May than a year ago. Feed for farm animals cost 48.7 percent more. Wooden packaging is 67.4 percent more expensive, paper and cardboard 52.3 percent. Pig iron, steel and iron alloys also rose in price by 51.8 percent.
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.
