German producer price index rose more than expected in April

According to the report from the Federal Statistical Office, in April 2021, the index of producer prices for industrial products increased by 5.2% compared with April 2020. This was the highest increase compared to the corresponding month of the preceding year since August 2011 (+5.2%), when prices rose strongly after the end of the finance crisis. Economists had expected a 5.1% increase.

Compared with the preceding month March 2021 the overall index increased by 0.8% in April 2021.

Prices of intermediate goods increased by 8.2% compared to April 2020. This was the highest price increase compared to the previous year since February 2011 (+8.9%). Compared to March 2021 these prices were up 1.8 %. Compared to April 2020 intermediate goods’ prices increased especially regarding metallic secondary raw material (+62.7%), sawn and planed wood (+27.1%) and metals (+17.3%). Prices of basic iron, steel and ferro-alloys increased by 23.5%, prices of non-ferrous metals were up 21.7%. 

Energy prices as a whole increased by 10.6% compared to April 2020 and by 0.6 compared to March 2021. The price increase from April 2020 to April 2021 is mainly due to the increase of electricity prices (+10.7%), furthermore to the high increase of prices for mineral oil products (+30.9%), which is mainly caused by a base effect resulting from the sharp drop in prices in spring 2020 in the course of the pandemic.

Prices of durable consumer goods increased by 1.6% compared to April 2020 (+0.4% compared to March 2021), capital goods, such as machines and vehicles, by 1.0% (+0.3% compared to March 2021).

Prices of non-durable consumer goods decreased by 0.6% compared to April 2020 but increased by 0.6% compared to March 2021. Food prices decreased from April 2020 to April 2021 by 1.3%, caused by price decreases of pork until February 2021. Though pork prices increased from February until April 2021 by 19.3% they still were 14.3% down compared to April 2020. By contrast, prices of butter increased by 10.1%, prices of sugar were up 13.3% and prices of vegetable crude oils 29.6%.