The high energy prices are not only noticeable at petrol stations in Germany. The Federal Statistical Office reports an increase in producer prices for the last few decades.
In Germany, inflation remains strong. In July, the prices companies receive or pay for goods rose more sharply than in 46 years. In a year-on-year comparison, producer prices rose by 10.4 percent, as reported by the Federal Statistical Office.
That was the strongest increase since January 1975, when prices rose sharply during the oil crisis. Experts were surprised by the strength of the increase. They had expected an annual rate of 9.2 percent.
Compared to the previous month, producer prices rose by 1.9 percent in July. Intermediate goods and energy remain the strongest price drivers, as the Federal Office explained. Intermediate goods rose by 15.6 percent over the year. Energy was on average 20.4 percent more expensive.
In terms of intermediate goods, the Federal Office referred in particular to significant price increases for wood and metals. “The main reasons for the sharp rise in steel and wood prices are likely to be the high demand at home and abroad as well as problems with the supply of raw materials.” In the case of steel prices, there were also strong price increases for iron ore imports.
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.
