Enlarge image
Chemical industry in the Rhineland: For industrial customers, natural gas was 210.7 percent more expensive in May
Photo: C. Hardt / Future Image / IMAGO
While the inflation rate for consumers is currently just under eight percent due to the high energy prices, manufacturers are already increasing prices among themselves and with retailers much more.
Compared to the same month last year, producer prices rose by 33.6 percent - and thus more than ever since the start of the survey in the founding year of the Federal Republic of Germany, 1949, as reported by the Federal Statistical Office.
This means that commercial producer prices have been achieving “new record increases every month” since December.
The development of producer prices is considered an important indicator for the development of consumer prices.
In April 2022, the rate of change compared to the same month last year was 33.5 percent and in March it was 30.9 percent.
The rate of inflation has recently also risen significantly as a result of the Ukraine war and the massive increase in energy costs.
According to the statistics office, the reason for the development is the increase in the price of energy.
Accordingly, energy prices in May were on average 87.1 percent higher than in the same month last year.
Increases also in intermediate goods
Natural gas had the highest impact on the rate of change for energy in distribution, up 148.1 percent from May 2021.
Power plants paid 241.2 percent more for natural gas than a year earlier.
Natural gas was 210.7 percent more expensive for industrial customers and 168.3 percent more expensive for resellers.
Electricity prices in May were 90.4 percent higher than a year earlier, and petroleum products increased by 55.8 percent.
According to the Federal Office, there were also high price increases for materials that are important for production - above all for metals, fertilizers and feedstuffs as well as industrial gases and packaging materials made of wood.
The rates were particularly high compared to the previous year for fertilizers and nitrogen compounds with plus 110.9 percent.
Paper and board were 52.3 percent more expensive, with newsprint up 111.3 percent.
Many construction companies are stuck with the cost increases
Food prices increased by 19.2 percent.
The prices for
butter (up 80.2 percent),
untreated vegetable oils (up 68.4),
Beef (up 42.9), coffee (33.6)
and milk and milk products (+24.1).
LBBW economist Jens-Oliver Niklasch said: "The high inflation rates for consumer goods that have now been achieved are worrying for consumers."
But the construction industry is also sounding the alarm.
Their companies have to pay 26.7 percent more for asphalt, for example.
The strong increase in material prices and thus construction costs make it difficult for the companies to create, said the general manager of the main association of the German construction industry, Tim-Oliver Müller.
"In the case of projects that were started several months or even years ago, this development could by no means be foreseen when the contract was signed." If fixed prices were agreed, the companies would now have to shoulder the increased costs themselves.
Almost every fourth civil engineering company is affected by this.
Apr/AFP/Reuters