According to the German Federal Statistical Office (Destatis), producer prices in the country in July rose by 10.4% compared with the same month last year. This jump in prices was the highest since January 1975. The rise in prices in July compared to the previous month amounted to 1.9%. Analysts note that fresh data showed the presence of problems in supply chains, and that this is becoming a real obstacle to the recovery of the industrial sector in Germany. Experts expect supply chain problems to persist until the end of 2021, which is why companies should conduct stress tests to assess their ability to cope with these problems and adapt to surges in demand. The cost of intermediate goods jumped 15.6% compared to July 2020, while energy prices jumped 20.4%. Growth in producer prices excluding energy resources amounted to 7.4%. Prices for consumer durables last month increased by 2.2% in annual terms, for capital goods – rose by 1.8%.
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