Consumers must be prepared for further burdens. Because the producer prices for commercial products are rising faster than ever. They are an indicator for the development of consumer prices. The main reason for this is the high energy costs.
Producer prices for industrial products rose more than ever in July. Compared to the same month last year, manufacturers had to pay an average of 37.2 percent more for their goods and products, as reported by the Federal Statistical Office. Compared to the previous month, producer prices rose by 5.3 percent – also the highest increase since the survey began in 1949.
The price index had already recorded new record increases every month from December to May. The inflation rate then slowed down slightly in June, only to rise sharply again.
Producer prices are seen as an indicator for the development of consumer prices, which had recently risen significantly as a result of the Ukraine war and the massive increase in energy costs. In July, inflation was 7.5 percent.
According to the statistics office, “the price trend for energy” is also primarily responsible for the increase in producer prices for commercial products. Accordingly, energy prices in July were on average 105 percent higher than in the same month last year.
Natural gas had the highest impact on the rate of change for energy in distribution, up 163.8 percent compared to July 2021. Power plants even paid 234.7 percent more for natural gas than a year earlier. According to the Federal Office, there were also high price increases for intermediate goods – above all for metals, fertilizers and animal feed as well as industrial gases and packaging materials made of wood.
