Producer prices in Germany once again rose at record-breaking speed in March, increasing by 30,9 percent compared to the same month last year, according to new figures from the Federal Statistical Office (Destatis). 

Manufacturers in Germany raise their prices by record amounts

After posting a record increase of 25 percent in January 2022 and again in February, producer prices in Germany rose even further in March - and at the fastest rate recorded since statistics began in 1949.

According to Destatis, manufacturers raised their prices for industrial products by 30,9 percent between March 2021 and March 2022. This far exceeded the economists’ predicted figure of 28,2 percent. 

“The current data is already reflecting the first effects of the war in Ukraine,” the statisticians wrote in their report on Wednesday. Following Russia’s invasion of Ukraine on February 24, the price of energy and natural gas in particular has skyrocketed, as have prices for many other goods including food. 

According to Destatis, the price of energy rose by 83,8 percent year-on-year in March 2022. Excluding energy, producer prices in March 2022 were 14 percent higher than in the same month last year. Some food products also posted huge increases last month, with the price of vegetable oils rising 72,3 percent year-on-year, butter 56 percent and coffee 20,5 percent. 

Consumer prices likely to rise in line with producer prices

Developments in producer prices usually give an indication of what could be in store for consumer prices in the not-too-distant future, since retailers are likely to pass at least part of the increase onto consumers. 

The inflation rate in Germany recently hit 7,3 percent, the highest rate recorded since 1981. Economists say that it is possible that double-digit values could soon be reached.