Status: 09/14/2022 10:19 am
Agricultural product prices continue to rise sharply. This indicates that groceries will also become more expensive again. Above all, the prices for grain and dairy products are likely to rise sharply.
Alongside energy, rising food prices are currently one of the biggest drivers of inflation in Germany. The current development of agricultural producer prices shows that this will not change any time soon. Producer prices for agricultural products in July fell slightly by 0.8 percent compared to June. Nevertheless, the prices are still 33.4 percent higher than a year earlier, as reported by the Federal Statistical Office.
Milk with strongest price increase
The prices for plant products increased slightly less than the prices for animal products (plus 38.8 percent) compared to the same month of the previous year (up 25.8 percent).
The biggest price driver for animal products was milk with an increase of 51.7 percent. “This means that the milk price has continued to rise since March 2021 compared to the same month last year,” according to the statisticians. In June 2022, milk cost 44.7 percent more than a year earlier. The rise in prices thus accelerated again in July.
Sharp rise in grain prices
The increase in the price of plant products in July was once again primarily due to grain prices, which were 53.2 percent higher than in the same month of the previous year. After all, between June and July, prices fell by 10.9 percent.
fruits and vegetables cheaper
On the other hand, agricultural producer prices for fruit and vegetables have fallen significantly. In July, 6.3 percent less was paid for fruit than a year ago. The drop in price of dessert apples, for example, was noticeable with a minus of 17.1 percent.
Vegetables became cheaper overall by 2.3 percent compared to the same month last year. In particular, the prices for cauliflower (minus 24.3 percent) and tomatoes (minus 29.0 percent) fell.
Important leading indicator for consumer prices
The index of producer prices of agricultural products measures the development of selling prices in agriculture (excluding sales tax). It thus shows the developments at the first economic level, i.e. even before the goods are sold. The ups and downs give an early indication of the future development of consumer prices.
The inflation rate in Germany rose to 7.9 percent in August. In addition to energy, food prices were also responsible for this: food cost 16.6 percent more in August than a year earlier.