Producer prices of industrial products in Germany (domestic market), January 2023
+17.8% on the same month a year earlier (preliminary)
–1.0% on the previous month (preliminary)
As reported by the Federal Statistical Office referring to preliminary results, the index of producer prices for industrial products increased by 17.8% compared to January 2022. Thus the price increase on producer level slowed down for the fourth time in succession. In December 2022 the increase had been +21.6% and in November +28.2%. Compared with the preceding month December 2022 the overall index decreased by 1.0% in January 2023 (–0.4% December 2022 on November 2022).
The results of the survey on producer prices are preliminary with regard to the overall index, the main industrial group energy and the indices on electricity and natural gas (distribution). The reason is the price brake on electricity and natural gas which is valid from January 2023 but will be realised only starting in March 2023. Hence the above mentioned subindices can be calculated for January and February 2023 without taking into account the price brake as the reporting units yet do not dispose of the prices including the price brake. With the publication of the results on March 2023 the figures on January and February will be revised.
Mainly responsible for the increase of producer prices compared to January 2022 still was the price increase of energy, due to the high weighting percentage combined with exceptionally high changes. Moreover, prices also rose significantly for non-durable consumer goods, intermediate goods, durable consumer goods and capital goods.
Also for the decrease of producer prices on a monthly basis the development of energy prices is the main reason.
High increase on energy prices on comparison with January 2022, but recently decreasing
Energy prices as a whole were up 32.9% compared to January 2022. Mainly responsible for the high rise of energy prices were the strong price increases of natural gas (distribution) and of electricity.
Compared with the previous month December 2022 energy prices fell by 5.0%, mainly caused by the decrease of prices for electricity.
Prices of natural gas (distribution) were up 50.7% on January 2022. For trade and commerce prices increased by 92.5%, for resellers by 50.6%. Industrial consumers had to pay 34.3% more for natural gas than one year before. Power plants’ prices were up 32.9%. Across all customer groups, prices of natural gas were up 0.9% compared to December 2022.
The price for electricity across all customer groups rose by 27.3% compared to January 2022. Prices for small commercial customers who often conclude tariff-bound contracts rose by 38.1%, for private households by 36.3%. Electricity redistributors had to pay 29.7% more than in January 2022, special contract customers 19.1%. Compared with the previous month December prices for electricity considered across all customer groups fell by 15.5%.
Prices of mineral oil products were up 12.6% from January 2022 and rose by 0.5% from December 2022. Prices of light heating oil increased by 28.8% compared to January 2022 (–1.4% on December 2022), those of motor fuels were up 10.5% (+1.7% on December 2022).
The overall index disregarding energy was 10.7% up on January 2022 (+1.4% compared to December 2022).
Growth in prices of non-durable consumer goods mainly due to increasing food prices
Prices of non-durable consumer goods increased by 17.9% compared to January 2022 and rose by 1.8% compared to December 2022. From January 2022 to January 2023 food prices increased by 23.4%. Especially high was the price increase of sugar (+71.5% compared to January 2022). Prices of meat of swine increased by 45.3% compared with January 2022, of processed and preserved potatoes by 42.5%. Prices of margarine and similar edible fats were up 38.3%, milk prices 33.4% and coffee prices 21.5%.
Prices of durable consumer goods increased by 10,8% compared to January 2022, mainly caused by the price development of furniture (+12.5%).
Significant price increase on intermediate goods, especially regarding glass, ceramics and processed stones
Prices of intermediate goods increased by 10.0% compared to January 2022. Compared to December 2022 these prices rose by 1.0 %. The greatest impact on the price increase compared to January 2022 had the price development of glass, ceramics and processed stones (+24.4% compared to January 2022).
Prices of wood chips increased by 59.8% from January 2022. Prices of wood pellets were up 49.8%. Prices of both product groups decreased from December 2022 to January 2023.
Prices of basic chemicals, fertilisers and nitrogen compounds increased by 18.7% compared to January 2022. Especially high were the price increases of fertilisers and nitrogen compounds (+38.8 %). Prices of cereal flour rose by 32.5% compared with January 2022.
Metal prices increased by 5.8%. Compared to December 2022 these prices fell by 0.7%. Prices of metallic steel and ferro-alloys increased by 4.1% compared to January 2022. By contrast prices of concrete reinforcing bars in bars or coils fell by 7.0%.
Prices of sawn and planed wood fell by 11.4% compared to January 2022, prices for secondary raw materials were down 21.0%.
Capital goods’ prices rose by 7.6%. The highest impact on the price development of capital goods had the increase of machine prices, which were 8.9% up on January 2022, followed by vehicles’ price development by +5.7%.
Source: DESTATIS
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