Electricity, beef, coffee: German manufacturers have increased their prices at record speed as a result of the Ukraine war.

Producer prices for commercial products rose by an average of 33.5 percent year-on-year in April.

"This was the highest increase compared to the same month last year since the survey began in 1949," said the Federal Statistical Office on Friday. Economists surveyed by Reuters had only assumed 31.5 percent after the rate in March was 30.9 percent This is the 17th month in a row that prices have risen from March to April alone: ​​"The current data also reflects the effects of the war in Ukraine."

Because after the Russian invasion on February 24, energy products such as natural gas in particular have become significantly more expensive, but so have many other goods such as food.

Experts do not expect the development to come to an end for the time being.

Commerzbank economist Ralph Solveen sees a clear signal in the data: "The sharp rise in prices is far from over."

This is bad news for consumers, as they have to be prepared for persistently high price increases.

Because retailers are already passing some of it on to end consumers.

Producer prices are seen as a precursor to general inflation.

In the statistics, the prices are listed from the factory gate - even before the products are further processed or sold.

At 7.4 percent, the inflation rate is currently higher than it has been since 1981.

Inflationary pressures on end consumers remain 'very high'

LBBW expert Jens-Oliver Niklasch expects "that inflationary pressure will also remain very high on end consumers".

With the relief package now approved by the Bundestag for June to August, the figures for inflation would initially be distorted downwards.

"But by September at the latest, we should have another unpleasant surprise in store." Commerzbanker Solveen also assumes that the price pressure will intensify.

"The pressure on the ECB to at least normalize its monetary policy quickly continues to increase." The first interest rate cut by the European Central Bank (ECB) is generally expected for July.

According to the statisticians, the main reason for the higher producer prices was again energy.

It rose in April by an average of 87.3 percent.

Natural gas cost 154.8 percent more than in April 2021, and it was even 260 percent more expensive for industrial customers.

Electricity rose by 87.7 percent and light heating oil by a good 102 percent, while fuel prices rose by almost 47 percent.

Excluding energy, producer prices were only 16.3 percent up on the previous year.

For food, the premium was 17.3 percent on average.

Butter prices rose particularly sharply (+70.9 percent compared to April 2021, +11.4 percent compared to March 2022).

Untreated vegetable oils cost 70.0 percent more than last year, beef was 41.6 percent more expensive and coffee was 30.8 percent more expensive.

Intermediate goods that are important for industry also increased in price by 26 percent.

Metal prices rose by an average of 43 percent, with pig iron, steel and ferroalloys alone rising by almost 60 percent.

This affects key industries such as car manufacturers and slows down the construction industry enormously.

The prices for fertilisers, packaging made of wood, feed, paper and grain flour also rose sharply.

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