September 21, 2022
In August 2022, the index of producer prices for industrial products in Germany increased by 45.8% compared with August 2021. As reported by the Federal Statistical Office this was the highest increase ever compared to the corresponding month of the preceding year. In July the increase had been +37.2% and in June +32.7%. Compared with the preceding month July 2022 the overall index rose by 7.9% in August 2022. This is also the highest increase ever compared to the previous month.
Mainly responsible for the increase of producer prices compared to August 2021 still was the price increase of energy. Moreover, prices also rose significantly for intermediate goods (+17.5%) and capital goods (+7.8%) as well as for durable and non-durable consumer goods (10.9% and 16.9%, respectively).
Energy prices more than doubled
Energy prices as a whole were up 139.0% compared to August 2021 and by 20.4% compared to July 2022. Mainly responsible for the high rise of energy prices were the strong price increases of electricity (+174.9%).
Electricity redistributors had to pay 278.3% more than in August 2021, special contract customers 195.6%. Prices rose for small commercial customers who often conclude tariff-bound contracts by 12.9%. Compared with the previous month July prices for electricity rose for all customers by 26.4%.
Prices of natural gas (distribution) were up 209.4% on August 2021. Power plants had to pay 269.1% more for natural gas than one year before. Industrial consumers’ prices were up 264.9%, those of resellers 236.8%. Across all customer groups, natural gas became 24.6% more expensive compared to July 2022.
Prices of mineral oil products were up 37.0% from August 2021 and fell by 3.2% from July 2022. Prices of light heating oil doubled compared to August 2021 (+104.0%), those of motor fuels were up 27.3%.
The overall index disregarding energy was 14.0% up on August 2021 (+0.4% compared to July 2022).
Significant price increase on intermediate goods, especially regarding metals and chemical precursors
Prices of intermediate goods increased by 17.5% compared to August 2021. Compared to July 2022 these prices slightly rose by 0.1 %. Mainly responsible for the price increase from August 2021 of intermediate goods was the price development of metals which was +19.9%. Compared to July 2022 these prices fell by 1.0%. Prices of metallic steel and ferro-alloys increased by 20.9% compared to August 2021 (-3.2% from July 2022). Prices of non-ferrous metals were up 16.9% on August 2021.
Prices of basic chemicals, fertilisers and nitrogen compounds increased by 32.9% compared to August 2021. Especially high were the price increases of fertilisers and nitrogen compounds (+108.8%). Prices for ammoniac which is used for the production of fertilisers was up 175.9%.
Prices of wood pellets doubled from August 2021 (+108.2%), prices of wood chips were up 133.3%. Prices of prepared feeds for farm animals increased by 37.6%. Prices of cereal flour rose by 46.4% compared to August 2021.
Wood prices fell by 13.0% compared to August 2021, their highest level so far, prices for metal secondary raw materials were down 12.3%.
Growth in prices of non-durable consumer goods mainly due to increasing prices for preserved meat, meat products and dairy products
Prices of non-durable consumer goods increased by 16.9% compared to August 2021 and rose by 0.8% compared to July 2022. From August 2021 to August 2022 food prices increased by 22.3%. Especially high was the price increase of butter (+74.6% compared to August 2021) and for crude vegetable oils (+51.4%). Prices of milk were up 35.3% from August 2021. Coffee prices were up 32.5%. Prices of meat disregarding poultry was up 27.5% on August 2021.
Prices of durable consumer goods increased by 10.9% compared to August 2021, mainly caused by the price development of furniture (+13.2%).
Capital goods’ prices rose by 7.8%. The highest impact on the price development of capital goods had the increase of machine prices, which were 9.3% up on August 2021, followed by vehicles’ price development by +6.2%. Especially high were the price increases of metal structures (+20.3%), turbines (+19.8%) and of ventilators (18.1%).
Source: DESTATIS
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