Germany: 33.5% jump in Producer Price Index (PPI)

Within a year, raw material prices soared in Germany, significantly increasing the cost of producing food, clothing and vehicles, as shown by the Producer Price Index.

According to the Federal Statistical Office, the producer price index (PPI) jumped 33.5% in just one year, which records the evolution of prices of raw materials used in production. Some indicative sectors: automotive, agricultural and electrical machinery, food, clothing, chemicals.

The main reason for the skyrocketing costs for producers, whether they are industrial or agricultural products, is energy accuracy. Compared to April 2021, energy prices increased by 87.3%.

Leading the increase is natural gas with almost 155%. Power plants paid for gas four times the price of last year, industries 260% and gas resellers 170%.

In second place is electricity, which cost producers almost 88% more than a year ago. Electricity suppliers paid about 157% more and industrial units almost 16%.

The price of butter as a raw material increased by 70%

In third place comes fuel with almost 54%. Oil cost producers more than double compared to last year, while other fuels cost 46.6% more.

If we exclude energy costs, we will see that the increase in prices for producers amounted to 16.3% compared to April 2021.

The increases in food are also impressive, which are 17% more expensive for German producers than last year. Butter, for example, is almost 71% more expensive than in 2021. The increase in flour, which now reaches 40%, is also indicative.

The increased producer prices pass, as expected, to the prices of the products on the shelf. Indicative of the evolution in food prices in Germany is that while in almost 20 years, from 2000 to 2019, they increased by only 1.5%, they launched 8.6% in just one year (April 2021 – April 2022)

Stefanos Georgakopoulos (destatis.de, dpa)

Source: Deutsche Welle