Producer prices in Germany rose 25% in January, the strongest rate since modern records began as energy costs soared, amplifying a series of sharp increases that are expected to keep consumer inflation at around 5% for several more. months.
The jump in producer prices, which influences consumer inflation, was the strongest since 1949, when West and East Germany were founded and the post-war economic data series began.
Analysts polled by Reuters had expected the reading, published on Monday (21) by the German Federal Statistics Agency, to remain at 24.2% in December.
Sharp increases of 18.4% and 19.2%, respectively, were recorded in October and November.
This succession of jumps in the price index at factory gates, which are measured before products are processed or offered for sale, suggests that “the pressure in the inflation chain remains high,” said Commerzbank economist Ralph Solveen.
“We expect the (consumer) inflation rate in Germany to be around 5% in the autumn (in the Northern Hemisphere),” he added.
Excluding energy prices, German producer inflation was 12% in January.
Source: CNN Brasil
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