Status: 07/20/2022 12:01
Producer prices for industrial products rose again, although the pace slowed somewhat. Is the price pressure easing now?
At first glance, the increase is bad news: According to the Federal Statistical Office, manufacturers are again asking higher prices for their commercial products – around a third more than in the same month last year. They do this mainly because the energy they need for production has become so expensive. In June, for example, industrial customers paid 180% more for natural gas than the previous year. The prices of so-called intermediate goods such as cast iron, steel and fertilizers also increased by one-fifth on average.
A glimmer of hope, but no all-clear
On closer inspection, however, there could also be a silver lining. Compared to the previous two months, price increases in the commercial sector have lost some momentum. It was 32.7% in June instead of 33.6% in May. Although this is only a slight drop, it is the first sign that the price pressure is no longer so strong, according to experts at Commerzbank.
Nevertheless, this should not yet be a signal for the green light. For example, the increase in prices for many building materials has even outpaced producer prices as a whole because steel has become so expensive. Inflation will therefore remain high for a long time.
Producer prices are rising, but at a slower pace
Nicholas Buschschlueter, HR, 20.7.2022 11:52 a.m.