August 20, 2022

In July 2022, the index of producer prices for industrial products increased by 37.2% compared with July 2021. As reported by the Federal Statistical Office this was the highest increase ever compared to the corresponding month of the preceding year. In June the increase had been +32.7% and in May +33.6%. Compared with the preceding month June 2022 the overall index rose by 5.3% in July 2022. This is also the highest increase ever compared to the previous month.

Mainly responsible for the increase of producer prices compared to July 2021 still was the price increase of energy. Moreover, prices also rose significantly for intermediate goods (+19.1%) and capital goods (+8.0%) as well as for durable and non-durable consumer goods (+10.9% and +16.2%, respectively).

Energy prices more than doubled mainly because of sharp rises in natural gas and electricity prices

Energy prices as a whole were up 105.0% compared to July 2021 and by 14.7% compared to June 2022. Mainly responsible for the high rise of energy prices were the strong price increases of natural gas (distribution) which was +163.8% on July 2021 and of electricity, which was 125.4% up.
Power plants had to pay 234.7% more for natural gas than one year before. Industrial consumers’ prices were up 194.7%, those of resellers 186.6%. Across all customer groups, natural gas became 18.8% more expensive compared to June 2022.

Electricity redistributors had to pay 215.9% more than in July 2021, special contract customers 129.2%. Compared with the previous month June prices for electricity rose for all customers by 20.0%. For smaller customers such as households (-5.5%) and small commercial customers (-5.1%) prices fell slightly due to the elimination of the EEG surcharge.

Prices of mineral oil products were up 41.8% from July 2021 and fell by 4.3% from June 2022. Prices of light heating oil were up 107.9% compared to July 2021, those of motor fuels 31.6%. Compared to the previous month June prices of mineral oil products fell by 4.3%.
The overall index disregarding energy was 14.6% up on July 2021 (+0.4% compared to June 2022).

Significant price increase on intermediate goods, especially regarding metals and chemical precursors

Prices of intermediate goods increased by 19.1% compared to July 2021. Compared to June 2022 these prices were down 0.3%. Metals’ prices were 24.1% up on July 2021, compared to June 2022 these prices fell by 2.5%.

Prices of metallic steel and ferro-alloys increased by 29.6%. Prices of non-ferrous metals were up 16.2%. Prices for both product groups decreased compared with the previous month (prices of ferro-alloys by 2.8% and non-ferrous metals by 5.3%).

Prices of chemical precursors increased by 33.4% compared to July 2021. Especially high were the price increases of fertilisers and nitrogen compounds (+100.4%). Prices of wood pellets and wood chips rather doubled from July 2021. Prices of prepared feeds for farm animals increased by 38%.

Prices of cereal flour rose by 48.9% compared to July 2021 (-1.1% compared to June 2022).

Price increase for non-durable consumer goods mainly caused by higher food prices

Prices of non-durable consumer goods increased by 16.2% compared to July 2021 and rose by 1.3% compared to June 2022. From July 2021 to July 2022 food prices increased by 21.1%. Especially high was the price increase of butter (+75.2% compared to July 2021). Prices of milk were up 32% from July 2021, compared to June 2022 they increased by 9.8%. Coffee prices were up 31.6% compared to July 2021. Prices of meat disregarding poultry was up 23.5% on July 2021(+0.9% compared to June 2022).

Prices of durable consumer goods increased by 10.9% compared to July 2021, mainly caused by the price development of furniture (+13.6%).

Capital goods’ prices rose by 8.0%. The highest impact on the price development of capital goods had the increase of machine prices, which were 9.7% up on July 2021, followed by vehicles’ price development by +5.9%. Especially high were the price increases of turbines (+22.4%) and of ventilators (21.2%).

Source: DESTATIS
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