Dhe rise in producer prices in Germany slowed for the third time in a row in December – a sign that inflation may have passed its peak. The main reason was a fall in energy prices, for example 2.2 percent for natural gas, 7.6 percent for heating oil and 7.8 percent for motor fuels.
This fall in the price of natural gas was observed even though the government’s acceptance of the December discount on natural gas for household customers played no role at the producer price level. However, there are still certain prices that are rising sharply, most recently those for sugar, for example.
Producer prices down month-on-month
Producer prices are prices at manufacturer level, changes in which often have a delayed impact on prices for end consumers. As the Federal Statistical Office announced on Friday, producer prices for industrial products fell by an average of 0.4 percent in December compared to November. Compared to the same month last year, they rose by 21.6 percent; but that was less than in November with 28.2, in October with 34.5 and in September with 45.8 percent. The September reading was the highest since the survey began in 1949.
The producer price increase for sugar was 11.6 percent compared to the previous month and 72.1 percent compared to the same month last year. Sugar prices for consumers also rose, by 10.2 percent from November to December.
When asked about the reasons, the Sugar Economic Association explained that sugar contracts were often renegotiated in autumn. In general, the price increases on the European sugar market are due to developments on the world market; Energy prices, inflation in general, rising beet prices as a result of higher prices for fuel, fertilizers and services and the increase in operating costs for logistics and packaging, for example, would also have an impact.
Food as a whole was 23.5 percent more expensive at the producer price level in December than a year earlier. Pork prices rose 46.5 percent year-on-year, while margarine and dietary fat prices rose 40.8 percent. Milk cost 33.1 percent more than in the same month last year, coffee 25.1 percent and butter 24.5 percent.