Status: 05/16/2022 12:40 p.m
In April, prices in German wholesaling rose faster than they had since 1962. Raw materials and energy in particular, but also food, became more expensive as a result of the Ukraine war.
According to calculations by the Federal Statistical Office, German wholesalers increased their prices by an average of 23.8 percent in April compared to the same month last year. According to the statisticians, there has not been a greater increase since calculations began in 1962. In March, the increase was still 22.6 percent, which was also a record. From March to April alone, wholesale prices rose by 2.1 percent.
“The effects of the war in Ukraine on wholesale prices can be observed in April 2022, especially in the wholesale of raw materials and energy sources, but also of various foods,” the statisticians explained the trend.
Energy and food drastically more expensive
Once again, petroleum products such as petrol, which were 63.4 percent more expensive than a year earlier, had the greatest influence. Solid fuels (up 70.9 percent) and ores, metals and semi-finished metals (up 55.7 percent) also rose sharply.
Wholesale prices for grain, raw tobacco, seeds and animal feed (up 56.3 percent) and for chemical products (up 44.4 percent) were also significantly higher. For milk, dairy products, eggs, cooking oils and dietary fats, the increase was 29.7 percent.
pressure on consumer prices
The development of wholesale prices is considered an indicator of future inflationary tendencies, since wholesalers are the link between manufacturers and end customers, and higher costs are likely to be passed on to consumers, at least in part.
Wholesale is therefore one of several economic stages at which the general price level is formed. In addition to wholesale, this includes the import prices for goods imported into Germany and the prices that manufacturers receive for their products.
They all tend to have an effect on consumer prices, on which the European Central Bank (ECB) bases its monetary policy. Inflation in Germany rose by 7.4 percent in April, the highest since 1981.