Germany's wholesale prices increased at the fastest pace since 1974 in July

According to the report from Destatis, in July 2021 the selling prices in wholesale trade rose by 11.3% compared with July 2020. This was the highest monthly annual rate of change since October 1974 after the first oil crisis (+13.2% compared with October 1973). In June 2021 and in May 2021 the annual rates of change had been +10.7% and +9.7%, respectively. The high rates of increase are partly due to a base effect as a result of the very low price level of the previous year's months in connection with the corona crisis and many currently increased prices for raw materials and precursors. Wholesale sales prices rose by 1.1% in July 2021 compared to the previous month.

In July 2021, the biggest impact on the rate of change in the wholesale price index compared to the same month of the previous year was the increase in the price of ores, metals and semi-finished metals wholesale (+59.2 %).

Particularly strong price increases compared to the previous year were also recorded in the wholesale trade of used and residual materials (+95.6 %), of raw and sawn timber (+59.9 %) and of petroleum products (+34.3 %). Cereals, raw tobacco, seeds and feed were also significantly more expensive (+20.7%) compared with the previous year. Lower than in July 2020 were prices in the wholesale of data processing equipment, peripheral equipment and software (-2,3%).