Producer prices in Germany highest since 1949 – report

The increases are driven by soaring energy costs, according to official data

Producer price inflation in Germany rose at a record pace in May, the Federal Statistical Office (Destatis) said on Monday – the fastest increase since the beginning of data collection in 1949.

According to data, prices ballooned 33.6% year-on-year last month, following April’s 33.5% increase.

On a monthly basis, producer prices gained 1.6% after growing 2.8% in April. Economists had projected prices to rise 1.5%.

Price increases continue to be driven primarily by soaring energy costs, which were up 87.1% from the previous year. The price of natural gas, which German industry relies on heavily, skyrocketed by 148.1%.

READ MORE: Germany to hoard gas – media

Destatis data shows that excluding energy, producer prices advanced 16.5% last month year-on-year. Prices of non-durable consumer goods were up 14.7%, and durable consumer goods by 9.4%.

According to the statistics office, the ongoing rise in producer prices indicates that consumer price inflation has not yet reached its peak.

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