Producer prices in Germany in November rose to the highest in 70 years

According to the Federal Statistical Office of Germany (Destatis), producer prices (PPI index) in Germany in November increased sharply by 19.2% compared to the same month last year. This growth was the highest since November 1951. 

It is worth noting that analysts predicted an even more significant increase in the PPI index in November – by 19.9%. 

The pace of price growth has accelerated for the eleventh month in a row, and the last five months the rise exceeds 10%. In particular, energy prices jumped by 49.4% in November: natural gas rose by 83.4%, electricity by 48%. The cost of intermediate products increased by 19.1%, consumer durable goods – by 3.7%, means of production – by 3.6%.

Experts note that such an increase in the PPI index indicates a gloomy outlook for the economy during the Christmas season, as the German industrial sector continues to struggle with disruptions in supply chains and the threat posed by a new strain of omicron.