By Philip Fabian
Germany is becoming more and more expensive! The prices for agricultural products are again increasing significantly. Consequence: groceries in Germany cost more and more.
The producer prices in September were on average 39.4 percent higher than in the same month last year, as the Federal Statistical Office announced on Monday. The inflation rate was 34.5 percent in August and 33.4 percent in July.
Alongside energy, rising food prices are currently one of the biggest drivers of inflation in Germany: they cost 20.3 percent more in October than a year earlier. That helped push the inflation rate to 10.4 percent, the highest level since 1951.
Prices for herbal products increased by 26 percent in September. Grain cost 41 percent more than a year ago, table potatoes even increased by 73 percent. In the case of vegetables (+22.8 percent), the prices for cucumbers (+48.0 percent), cauliflower (+29.2 percent) and cabbage (+24.5 percent) rose in particular.
Producer prices for fruit fell by 4.7 percent, with dessert apples being 20.6 percent cheaper than in the same month last year. The prices for animal products climbed well above average in September: 57.5 percent more had to be paid for milk alone.
“Thus, the price increase for milk compared to the same month last year has continued since March 2021.” In July 2022, the increase was over 50 percent for the first time.
Animal prices increased by 43 percent. The price of slaughter pigs increased by a good 63 percent. According to the statistics office, this is mainly due to the low supply of pigs ready for slaughter with the demand remaining the same. Beef prices rose 21.1 percent and poultry prices climbed 35.5 percent.
The index of producer prices of agricultural products measures the development of selling prices in agriculture (excluding sales tax). It thus shows the developments at the first economic level, i.e. even before the goods are sold. The ups and downs give an early indication of the future development of consumer prices.