Germany’s industrial producer price index jumps 15.8% YoY for Feb 2023

The index of producer prices for industrial products in Germany for February 2023 increased by 15.8 per cent year-on-year (YoY), as per the Federal Statistical Office (Destatis). In January 2023, the increase had been 17.6 per cent. Compared with the preceding month, January 2023, the overall index decreased by 0.3 per cent in February 2023, –1.2 per cent in January 2023 on December 2022.

Mainly responsible for the increase of producer prices compared to February 2022 still was the price increase of energy, due to the high weighting percentage combined with exceptionally high changes. Moreover, prices also rose significantly, in parts due to the price development for energy products, for non-durable consumer goods, intermediate goods, durable consumer goods, and others, Destatis said in a press release.

The index of producer prices for industrial products in Germany rose 15.8 per cent YoY in Feb 2023, with a decrease of 0.3 per cent MoM. Energy prices drove the increase, with natural gas prices up 38.9 per cent YoY for trade and commerce, 40.2 per cent for resellers, and 8.9 per cent for industrial consumers. Electricity prices rose 27.1 per cent YoY.

Also, for the decrease of producer prices on a monthly basis the development of energy prices is the main reason. Energy prices as a whole were up 27.6 per cent compared to February 2022. Mainly responsible for the high rise of energy prices were the strong price increases of natural gas (distribution). Compared with the previous month, January 2023, energy prices fell by 1.4 per cent as well mainly caused by the decrease in the prices of natural gas.

Natural gas prices (distribution) were up 38.9 per cent on February 2022. For trade and commerce, prices increased by 91.5 per cent, for resellers by 40.2 per cent. Industrial consumers had to pay 8.9 per cent more for natural gas than one year before. Power plants’ prices were up 26.8 per cent. Across all customer groups, natural gas prices were down 4.2 per cent compared to the previous month, January.

Electricity prices across all customer groups rose by 27.1 per cent compared to February 2022. Compared with the previous month, January, electricity prices considered across all customer groups increased by 2.5 per cent.

Prices of mineral oil products were up 5.1 per cent from February 2022 and decreased by 1.7 per cent from January 2023. Light heating oil prices increased by 8.3 per cent compared to February 2022, which was –7.3 per cent on January 2023, those of motor fuels were up 3.5 per cent, which was –2.0 per cent on January 2023.

The overall index disregarding energy was 10.2 per cent up on February 2022, which was 0.5 per cent compared to January 2023, added the release.

Prices of non-durable consumer goods increased by 17.9 per cent compared to February 2022 and rose by 0.9 per cent compared to January 2023. Prices of durable consumer goods increased by 10.5 per cent compared to February 2022.

Fibre2Fashion News Desk (NB)