In Germany, price increases at manufacturer level remain at record levels. In September, producer prices rose by 45.8 percent year-on-year, as the Federal Statistical Office announced on Thursday in Wiesbaden. “Thus, August and September saw the highest increases in producer prices compared to the same month last year since the survey began in 1949,” the statement said.
Energy prices are still the strongest driver of inflation. In September, energy prices were 132.2 percent higher than in the same month last year. In addition, partly as a result of the enormous price increases for energy, the prices for intermediate goods, capital goods and durable and non-durable goods were also significantly higher than in the previous year. Excluding energy, producer prices were 14 percent higher than in the previous year.
This core rate is a good sign, noted Commerzbank economist Ralph Solveen. “The underlying inflation has tended to weaken.” This is due to prices for intermediate goods, which have practically held their level for months, concluded Solveen. For the coming months, this is fueling the hope that the increase in consumer prices could also ease off somewhat.
The prices that producers receive for their products also increased more than expected in a month-on-month comparison. The increase from August to September was 2.3 percent, while analysts had only expected growth of 1.5 percent. In the previous month, however, the month-on-month growth was much stronger and had reached a record value of 7.9 percent.
Producer prices capture producer-level price pressure by reflecting producer selling prices. They are considered a leading indicator of inflation because their development usually affects consumer prices. The European Central Bank (ECB), in turn, bases its monetary policy on consumer prices. (dpa)