Germany's producer price index rose more than expected in January

According to the report from the Federal Statistical Office (Destatis), in January 2021, the index of producer prices for industrial products increased by 0.9% compared with the corresponding month of the preceding year. Economists had expected a 0.3% increase. In December 2020 the annual rate of change all over had been +0.2%. Compared with the preceding month December 2020 the overall index increased by 1.4% in January 2021 (+0.8% in December 2020). Economists had expected a 0.8% increase.

Prices of intermediate goods increased by 2.4% compared to January 2020 and by 2.0% compared to the previous month December 2020. Prices of durable consumer goods increased by 1.5% compared to January 2020, capital goods, such as machines and vehicles, by 0.7%.

Energy prices as a whole increased by 0.7% compared to January 2020 and by 2.7% compared to December 2020. The price increase from December 2020 to January 2021 in parts is due to the national CO2-pricing that has been introduced in January 2021.

The overall index disregarding energy was 0.9% up on January 2020.

Prices of non-durable consumer goods decreased by 1.8% compared to January 2020. Food prices decreased by 3.3%.