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2022.05.2006:45:00UTC+00German Producer Price Inflation Sets New Record

Germany's producer price inflation accelerated further in April to set a fresh record high and soaring energy prices continued to drive prices higher amid the war in Ukraine, preliminary figures from the statistical office Destatis showed Friday. The producer price index climbed 33.5 percent year-on-year following a 30.9 percent increase in March. Economists had forecast a 31.5 percent rise. Destatis said it was the highest increase ever compared to the corresponding month of the preceding year and that these results also contain implications deriving from Russia's attack on Ukraine.

Producer prices rose 2.8 percent from the previous month. Economists had forecast a 1.4 percent increase. Energy prices surged 87.3 percent annually and increased 2.5 percent from the previous month. The triple-digit increase in natural gas prices continued to be the main reason behind the surge in energy prices. Power plants had to pay four times as much as one year, industrial consumers' prices soared 259.9 percent, and those of resellers shot up 170.0 percent, Destatis said.

Electricity prices rose 87.7 percent and redistributors paid 157.3 percent more than a year ago. Mineral oil products grew 53.9 percent year-on-year, but decreased 4.6 percent from the previous month. Prices of light heating oil surged 102.1 percent and those of motor fuels rose 46.6 percent.

Excluding energy, the overall producer price index rose 16.3 percent annually and increased 3.0 percent from the previous month.

Among the main industrial groups, prices of intermediate goods climbed 26.0 percent year-on-year and rose 4.1 percent from the previous month. Prices grew significantly for metals, fertilizers, animal feeds and wooden containers. Prices of non-durable consumer goods increased 13.2 percent from a year ago and rose 3.9 percent from the previous month. The price growth was driven by increasing prices for butter, crude vegetable oils, coffee, preserved meat and meat products. Durable consumer goods prices increased 8.3 percent year-on-year, mainly due to the 10.5 percent rise in furniture prices. Capital goods' prices rose 6.7 percent, marking the biggest year-on-year change since October 1975 when prices grew 6.8 percent. The latest increase was mainly led by higher prices for machines and vehicles.



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