Wholesale prices with the strongest increase since 1974 | Free press

Delivery problems in world trade and rising raw material prices make many wholesale products more expensive. Consumers must expect higher prices when shopping.

Wiesbaden (dpa) – The price increase in Germany remains high. In August, wholesale prices rose by 12.3 percent compared to the previous year, reports the Federal Statistical Office in Wiesbaden.

That was the strongest increase since October 1974, when wholesale prices had risen a little more in the wake of the first oil crisis. In July 2021 the increase was 11.3 percent and in June 10.7 percent.

The statisticians cite two reasons for the high rise in prices at the wholesale level. On the one hand, the prices for many raw materials and intermediate products are currently rising sharply. This effect can be traced back to numerous delivery problems in world trade, most of which are related to the corona pandemic. On the other hand, the Federal Office refers to a statistical base effect due to the very low price level a year ago. This was a consequence of the severe economic corona slump in 2020.

Wholesale is one of several levels in Germany on which the general price level is formed. In Germany, consumer prices had recently risen more sharply than in almost 28 years. In addition to the prices for goods imported into Germany, the prices that manufacturers receive directly for their products are also decisive for the development of consumer prices.

There has recently been a significant increase in agriculture, for example. The producer prices for agricultural products were 9 percent higher in July 2021 than in July 2020, according to the Federal Statistical Office. Compared to June 2021, however, there was a slight decrease of 0.3 percent.

As in previous months, the high price increase for plant products in July 2021 – by 11 percent compared to the same month last year – is mainly due to the higher prices for grain. But vegetables also became significantly more expensive, with lettuce the increase was almost 38 percent. The prices for animal products rose by around 8 percent and for milk by a good 14 percent. The strong increases in producer prices are likely to lead to higher prices in supermarkets in the long run. What is bad for consumers is more likely to make farmers breathe a sigh of relief. In the past, they had repeatedly demonstrated against what they saw as prices for their products that were too low.


Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Recent News

Editor's Pick