German Annual Producer Inflation Record High 45.8% in August with Natural Gas +209.4% and Electricity +174.9%

German producer prices surged in August annual PPI in Germany rose to a new record high of 45.8% in from 37.2% in July and above market forecasts of 37.1%. On a monthly basis, producer prices were up 7.9%, also the most on record, after a 5.3% rise in July and crushing a consensus 1.6% gain. Inflation continues to run rampant throughout the world with central banks raising rates ad nauseum. Energy and food pricing pressures continue to elevate globally. The effect is showing some variance by location.

Germany Finance

The sharp rise in power prices have been well documented and contributed to energy prices the biggest upward inflator 139.0% vs 105.0% in July, namely natural gas up 209.4% and electricity up 174.9%. Germany’s consumer inflation showed the highest reading since German reunification.

Inflation remains vertical due to the war in Ukraine, Russian cuts in gas supply, marked price increases at the upstream stages of the economic process and interruptions in supply chains caused by the Covid-19 pandemic.

Germany August 2022 y/y PPI 45.8% v 37.2% July and exp 37.1%

  • German August prelim PPI 45.8% y/y from 37.2% a month earlier and above market forecasts of 37.1
  • Energy prices remained the biggest upward contributor (139.0% vs 105.0% in July), namely the distribution of natural gas (209.4%) and electricity (174.9%).
  • Excluding energy, producer prices climbed 14.0% from a year earlier.
  • Other significant price increases were seen for intermediate goods (17.5%), particularly metals (19.9%), fertilizers and nitrogen compounds (108.8 %), and cereal flour (46.4%);
  • Non-durable consumer goods (16.9%), such as food (22.3%); and durable consumer goods (10.9%); and capital goods (78%), mainly led by machinery and vehicles.
Germany Producer Prices Annual Change

Germany August 2022 m/m PPI 7.9% v 5.3% July and exp 1.6

  • On a monthly basis, PPIs were up 7.9%, a record high, above a 5.3% rise in July and consensus of +1.6% gain
Germany Producer Price Inflation MoM

Latest data released by Destatis – 20 September 2022

Source: Destatis, TC, NSI

From The TradersCommunity Research Desk