The main cause of the increase in producer prices in Germany from May 2021 to May 2022 was remained the increase in energy prices

June 22, 2022

In May 2022, the index of producer prices for industrial products increased by 33.6% compared with May 2021. As reported by the Federal Statistical Office this was the highest increase ever compared to the corresponding month of the preceding year. In April 2022 the index had increased by 33.5% and in March by 30.9%. Compared with the preceding month April 2022 the overall index rose by 1.6% in May 2022.

Strong increase in prices for all energy sources

Energy prices as a whole were up 87.1% compared to May 2021 and by 2.5% compared to April 2022. Mainly responsible for the high rise of energy prices were the strong price increases of natural gas (distribution) which was +148.1% on May 2021. Power plants had to pay 241.2% more for natural gas than one year before. Industrial consumers’ prices were up 210.7%, those of resellers 168.3%. While end users with higher purchase volumes, whose prices are often based on stock market quotations, had to pay less than in April 2022, prices for buyers of smaller purchase quantities continued to rise. Across all customer groups, natural gas became 2.5 % more expensive compared to April 2022.

Electricity prices rose by 90.4%. Redistributors had to pay 165.2% more than in May 2021, special contract customers 83.2%.

Prices of mineral oil products were up 55.8% from May 2021 and rose by 2.5% from April 2022. Prices of light heating oil were up 96.0% compared to May 2021, those of motor fuels 49.4%.

The overall index disregarding energy was 16.5% up on May 2021 (+1.2% compared to April 2022).

Significant price increase on intermediate goods, especially regarding metals, fertilisers, prepared feeds for farm animals and wooden containers

Prices of intermediate goods increased by 25.1% compared to May 2021. Compared to April 2022 these prices were up 1.5 %. The highest impact on the price development of intermediate goods had the increase of metals’ prices, which were 38.1% up on May 2021. Prices of metallic steel and ferro-alloys increased by 51.8%. Prices of non-ferrous metals were up 24.8%.  Prices of reinforcement steel increased by 72.1% compared to May 2021, unwrought aluminium by 42.0%.

Especially high were the price increases of fertilisers and nitrogen compounds (+110.9 %). Prices of industrial gases rose by 68.8%, those of wooden containers were up 67.4% from May 2021. Prices of prepared feeds for farm animals increased by 48.7%, prices of sawn timber by 41.9%.

Compared to May 2021 prices of paper and paperboard were up 52.3%, here in particular prices of newsprint increased (+111.3%). Prices of corrugated paper and paperboard, which are important for the packaging industry, increased by 42.4%.

Prices of cereal flour rose by 44.8% compared to May 2021 (+5.1% compared to April 2022).

Growth in prices of non-durable consumer goods mainly due to increasing prices for preserved meat and meat products

Prices of non-durable consumer goods increased by 14.7% compared to May 2021 and rose by 1.3% compared to April 2022. From May 2021 to May 2022 food prices increased by 19.2%. Especially high was the price increase of butter (+80.2% compared to May 2021 and +7.2% compared to April 2022). Prices of crude vegetable oils were up 68.4% from May 2021. Prices of meat of bovine animals increased by 42.9% compared to May 2021, those of meat of swine by 24.1%, the latter decreasing by 2.6% from April to May 2022. Coffee prices were up 33.6% compared to May 2021,those of dairy products 24.1%.

Prices of durable consumer goods increased by 9.4% compared to May 2021, mainly caused by the price development of furniture (+11.9%).

Capital goods’ prices rose by 7.1%. This was the highest year-on-year change since September 1975 (+7.4%). The highest impact on the price development of capital goods had the increase of machine prices, which were 8.3% up on May 2021, followed by vehicels’ price development by +4.9%. Especially high were the price increases of metal structures (+26.1%), of parts and accessories of computing machines (+18.9%) as well as of parts of refrigeration and freezing equipment and heat pumps (+15.7%).

Source: Destatis
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