Biggest jump in wholesale prices since 1974
The demand for raw materials has skyrocketed after the first corona dent. Wholesale prices have now reached record levels again for decades.
Wholesale prices in Germany rose more sharply in the past year than in almost 50 years.
According to the Federal Statistical Office, there was a higher increase than the annual average of 9.8 percent within a year, the last time during the first oil crisis in 1974 with a plus of 12.9 percent.
One reason for the development last year: The great demand for raw materials and intermediate products in view of the economic recovery after the Corona low. Above all, the prices for petroleum products (plus 32 percent) as well as ores and metals (plus 44.3 percent) rose sharply in wholesale compared to the previous year, as the Federal Office announced on Wednesday.
Difference to 2020
In addition, there is a basic effect: In the crisis year 2020, the price level for many raw materials was comparatively low, so that the difference is now even more significant.
From November to December 2021, wholesale sales prices rose by just 0.2 percent, according to the Wiesbaden authority. However, they were 16.1 percent above the December 2020 level.
Wholesale is one of several economic levels in Germany on which the general price level is formed. Added to this are the prices for goods imported into Germany and the prices that manufacturers receive for their products, the producer prices. They all have an impact on consumer prices, on which the European Central Bank bases its monetary policy.
In Germany, consumer prices in December were 5.3 percent above the level of the same month last year. The inflation rate in Europe’s largest economy thus reached its highest level since June 1992. For the year 2021 as a whole, the Federal Statistical Office has calculated the highest rate of inflation since 1993 for Germany as a whole: energy prices, delivery bottlenecks and the withdrawal of the temporary VAT cut drove the annual rate of increase to 3 , 1 percent.