Wiesbaden, April 20, 2023. According to preliminary data from the Federal Statistical Office (Destatis), Germany’s producer prices of industrial products were 7.5% higher in March 2023 than in March 2022. In February 2023, the rate of change had still been +15.8% compared to the same month last year. Compared to the previous month, producer prices fell by 2.6% in March 2023. This made them decline for the sixth month in a row.
The results are still preliminary with regard to the development of electricity and gas prices. The reason for this is the price brake for electricity and gas, which has been in force since January 2023 and has been implemented since March 2023. Since not all energy supply companies subject to information reported data in March, taking into account the price break, the effect of the price break could only be partially taken into account. This means that the results for the sub-index energy and the overall index of producer prices remain provisional for March 2023. The update of the preliminary results for January and February 2023 must also be postponed again.
The main reason for the increase in commercial producer prices compared to the previous year is still the price development of energy, due to the high weighing share of energy prices in the overall index in combination with exceptionally high price changes. In addition, partly as a result of the price increases for energy, the prices of consumer goods, intermediate goods, durable goods and capital goods also rose significantly. The development of energy prices is also mainly responsible for the decline in the producer price index compared to the previous month.
Continued increase in energy prices compared to the previous year, but declining in the previous month’s comparison
According to preliminary results, energy prices in March 2023 were on average 6.8% higher than in the same month last year. Compared to February 2023, on the other hand, they fell by 7.6%. Since energy prices had already risen sharply shortly after the start of the Russian attack on Ukraine in March 2022, this, together with the price declines of recent months, now led to a comparatively moderate increase compared to the previous year (base effect). The highest influence on the rate of change compared to the same month last year in energy was still the price increases for natural gas in distribution. Natural gas in distribution cost 19.1% more across all customer groups in March 2023 than in March 2022. The prices for electricity were unchanged across all customer groups compared to March 2022.
Mineral products were 18.4% cheaper than in March 2022, compared to February 2023, when these prices fell by 2.3%. In March 2022, the prices of mineral oil products had risen by 25.8% within a month as a result of the outbreak of the war in Ukraine.
Light heating oil was 33.6% cheaper in March 2023 than a year earlier (-4.4% compared to February 2023). Fuel prices fell by 19.4% (-1.7% compared to February 2023).
Without taking energy into account, producer prices were 7.9% higher than in March 2022 and rose by 0.2% compared to February 2023.
Increase in the price of consumer goods, mainly due to increased prices of food
Prices for consumer goods were 15.4% higher in March 2023 than in March 2022 and rose by 0.7% compared to February 2023. Food was 19.2% more expensive than in the previous year. Sugar prices rose particularly sharply (+89.2% compared to March 2022). Compared to the previous month of February, however, these prices fell slightly (-0.1%). Processed potatoes cost 46.6% more than in March 2022 and pork, 33.4%. Margarine and dietary fats were 29.3% more expensive than a year earlier. But in particular, butter (-11.6%) and untreated vegetable oils (- 31.0%), were cheaper than in March 2022.
The prices of consumer goods were 10.0% higher in March 2023 than a year earlier and rose by 0.3% compared to February 2023, especially due to the price development of furniture (+11.7% compared to March 2022).
Capital goods cost 7.5% more than in the previous year (+0.2% compared to February 2023), mainly caused by the price increases for machines with an increase of 9.4%, followed by those for motor vehicles and motor vehicle parts (+5.9%).
Price increases for intermediate goods mainly due to glass, ceramics and processed stones
Advance goods were 4.7% more expensive in March 2023 than a year earlier. Compared to the previous month, these prices fell slightly by 0.1%. The greatest influence on the price increase for intermediate goods compared to the previous year was the price development for glass, glassware, ceramics and processed stones (+24.1% compared to March 2022).
Cement prices rose particularly sharply (+52.3 % compared to March 2022). Wood in the form of plates or schnitzels was 30.7% more expensive than in March 2022 (-6% compared to February 2023). Household, hygiene and toiletries made of pulp, paper and cardboard cost 27.8% more.
Metals were cheaper than in March 2022 (-3.6%). Compared to the previous month, metal prices fell by 1.0%. Cast iron, steel and ferroalloy cost 9.3% less than in March 2022. The prices of reinforcing steel in bars fell by 24.5% compared to the previous year.
In the case of the previous year, the prices of non-metallic secondary raw materials such as paper fell particularly sharply in the previous year (-43.7%).
Source: Agrar-presseportal.de