In Germany, the biggest increase in wholesale prices since 1974

Wholesale prices in Germany climbed an average of 9.8% in 2021 over one year, unheard of since the first oil shock in 1974, while many raw materials and intermediate products are still scarce, according to the Office. federal statistics.

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The one-year price variations of petroleum products (+ 32.0%) as well as ores, metals and semi-finished metal products (+ 44.3%) had “a decisive influence” on the statistics in 2021, writes Wednesday Destatis in a press release. The office also highlights a base effect due to low price levels for many raw materials in 2020 in connection with the Covid-19 crisis.

This sharp rise in the prices of raw materials and intermediate products means that the index increased by 16.1% in December alone, a little less than November (+ 16.6%) which marked an annual peak, illustrating a continuous increase since the equilibrium (0.0%) posted in January 2021. Over the last month of 2021, the increase in the prices of petroleum products reached 50.6% and 56.9% concerning ores, metals and semi-metallic products. -finished.

Also read: Transient or long-lasting, inflation is breaking records

European monetary policy will have to adapt

The data comes as more than eight out of ten companies in German industry suffered from bottlenecks and supply problems in December, a record proportion according to the latest data published by the economic institute IFO.

Inflation in Germany reached 5.3% in December over one year, at the highest level since June 1992. And faced with an increase which could persist at a high level for longer than expected by the European Central Bank, the new Bundesbank boss Joachim Nagel warned Tuesday that monetary policy in the euro zone will have to “adjust the course of its monetary policy”, which is currently very expansive.

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