German producer prices: Excluding oil and power supply more than meagre

German producer prices rose by 2.5% in April compared with the same month last year. This means that the percentage rate of increase has now remained very stable for five months at between 2.4% and 2.7%. The Federal Statistical Office points out that producer prices for energy products made a significant contribution to the rate of increase (i.e. as in previous months). They rose by 6.6% – without them producer prices would only have risen by 1.3%.

What is not explicitly mentioned in the headline text: Within the producer prices for energy the prices for electricity even rose by 10.8%. So: Without electricity production we would probably have seen a total increase of less than 1%? The chart (since 2014) shows quite clearly how much the price inflation of the manufacturing industry depends on the energy sector. Electricity prices are seen as a dark blue line, mineral oil prices as a blue line. Without the two the average (red) would probably be much closer to the zero line.

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