Inflation: Producer prices with record increase - Özdemir expects rising food prices

Created: 06/14/2022, 11:51 am

By: Lisa Mayerhofer

Producer prices for agricultural products have risen more than ever before.

This could affect consumer prices.

Minister of Agriculture Özdemir also expects prices to rise.

Berlin – The producer prices of agricultural products rose more sharply in April than at any time since the survey began in 1961. As the Federal Statistical Office announced on Tuesday, producer prices were 39.9 percent higher than in April 2021. This can have an impact on the affect consumer prices.

Minister of Agriculture Özdemir expects food prices to rise

Federal Agriculture Minister Cem Özdemir (Greens) expects food prices to continue to rise in Germany.

"Unfortunately, a lot is yet to come," said the Minister of the Düsseldorf

.

The food industry has long purchasing deadlines for energy.

"We have to expect increases in autumn and winter because retailers now have to supply themselves with expensive energy and the price increases are passed on to customers."

In the newspaper, Özdemir also defended his proposal to eliminate VAT on fruit, vegetables and pulses in the fight against high food prices.

"There can be no serious dispute that the current VAT system should be fundamentally reviewed," said the Greens politician.

“Logic, simplicity and sustainability are the keywords.

Then you quickly end up with my suggestion.”

Producer prices for agricultural products rose more than ever in April

Meanwhile, producer prices for agricultural produce shot up nearly 40 percent in April.

Producer prices describe the payment excluding sales tax that farmers receive for their products at the first level of trade.

Rising producer prices can lead to higher consumer prices.

Already in March there was a record increase of 34.7 percent in producer prices.

Compared to the previous month of March, prices rose by 5.6 percent.

Both the prices for plant products (plus 45.7 percent) and animal products (plus 35.8 percent) rose sharply.

According to the Wiesbaden statisticians, the enormous increase in the price of plant products is due, among other things, to the rise in grain prices since July 2020.

In April, these were a good three quarters (77.6 percent) higher than in the same month of the previous year and thus slightly higher than in March.

The Ukraine war has exacerbated the already tense situation on the world market and is driving up prices.

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A farmer drives across a field with a tractor and attached drill.

© Patrick Pleul/dpa-Zentralbild/dpa/Archive image

Producer prices: rapeseed and potatoes are becoming significantly more expensive, strawberries much cheaper

Rapeseed has become significantly more expensive (plus 77.1 percent).

In addition, producer prices for potatoes have more than doubled within a year (plus 106.2 percent).

According to the statisticians, this is due to the low harvests due to the weather and a relatively low price level in the same month of the previous year due to the pandemic.

On the other hand, the producer prices for fruit fell by almost 15 percent, vegetables were hardly more expensive (plus 1.1 percent).

Strawberries are almost a quarter (24 percent) cheaper – due to an early and bountiful harvest, supply is high this year while demand is weak.

There were significant increases in the price of milk (up 37 percent) and eggs (up 18 percent).