According to the data of the German Federal Statistical Office (Destatis), the Wholesale Price Index in Germany increased by 0.8 percent compared to August last month and by 13.2 percent compared to September 2020.
HIGHEST INCREASE IN WHOLESALE PRICES IN GERMANY SINCE THE OIL CRISIS OF 1974
Destatis said in its statement, "The last time the increase was as high as 13.3 percent due to the first oil crisis was in June 1974. In the context of the high annual rate of change in wholesale prices, the increase in raw material and intermediate product prices, and the coronavirus crisis. It is due to the base effect due to the very low price levels in recent years." it was said.
In September, petroleum products increased by 42.3 percent, metal prices increased by 62.8 percent and timber prices increased by 54.6 percent compared to a year ago.
While animal feed prices increased by 23.9 percent on an annual basis last month, there was a 7.1 percent decrease in live animal wholesale prices.
Since wholesale is the nexus between the producer and the end consumer, this development is an indicator for future inflation trends.
Annual inflation in Germany rose to 4.1 percent in September, surpassing 4 percent for the first time in almost 28 years.
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