German producer prices rise at record pace in March (Destatis–China Economic Net)

Customers shop at a supermarket in Frankfurt, Germany, April 22, 2022. German producer prices rose 30.9 percent year-on-year in March, the biggest increase since the start of the data series in 1949, the Federal Statistical Office (Destatis) said on Wednesday. (Xinhua/Lu Yang)

German producer prices rose 30.9% year-on-year in March, the biggest increase since the data series began in 1949, the Federal Statistical Office (Destatis) said on Wednesday.

Energy prices continued to be “primarily responsible” for price developments, rising 83.8%.

According to Destatis, natural gas and electricity experienced particularly strong price increases (144.8% and 85.1% respectively).

Excluding energy, producer prices in Germany would have risen only 14% year-on-year, Destatis noted.

After the fall in oil prices in 2020 due to the outbreak of the COVID-19 pandemic, a barrel of Brent now costs around 110 US dollars.

Significant price increases were also recorded for intermediate goods, up 23.3% year-on-year.

According to Destatis, the prices of fertilizers, nitrogen compounds and wooden containers particularly increased, by 87.2%, 87.2% and 68.8%, respectively.

In March, the country’s inflation rate hit a 40-year high of 7.3%, according to the latest official figures. Domestic energy and fuel prices even increased by 39.5%.

To cushion the effects of rising energy prices, the German government has adopted several measures, including an increase in the tax-free basic allowance and higher mileage allowances for long-distance commuters.

A woman shops at a supermarket in Frankfurt, Germany, April 22, 2022. German producer prices rose 30.9 percent year-on-year in March, the biggest increase since the start of the data series in 1949, the Federal Statistical Office (Destatis) said on Wednesday. (Xinhua/Lu Yang)

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