Germany's producer price index rose less than expected in February

According to the report from the Federal Statistical Office, in February 2021, the index of producer prices for industrial products increased by 1.9% compared with the corresponding month of the preceding year. Economists had expected a 2.0% increase. In January 2021 the annual rate of change all over had been +0.9%. Compared with the preceding month January 2021 the overall index increased by 0.7% in February 2021 (+1.4% in January 2021).

Mainly responsible for the increase of producer prices compared to February 2020 were the prices of intermediate products. Prices of intermediate goods increased by 3.8% compared to February 2020. This was the highest price increase compared to the previous year since November 2017 (+4.0%). Compared to January 2021 these prices were up 1.1 %. 

Energy prices as a whole increased by 3.7% compared to February 2020 and by 1.3% compared to January 2021. The price increase from February 2020 to February 2021 is mainly due to the increase of electricity prices (+6.8%), furthermore to the national CO2-pricing that has been introduced in January 2021 on several energy products. 

Prices of durable consumer goods increased by 1.4% compared to February 2020, capital goods, such as machines and vehicles, by 0.8%.