The main reason for the price increase was higher electricity costs
In Germany, prices at the manufacturer level continued to rise at the beginning of the year. According to the Federal Statistical Office, producer prices climbed 0.9 percent in January compared to the same month last year. Analysts had only expected an increase of 0.3 percent. The annual rate was thus positive for the second month in a row, after producer prices had previously fallen continuously year-on-year since the beginning of 2020.
In a monthly comparison, the Federal Office reported a price increase of 1.4 percent. Here, too, the expectations of analysts were exceeded.
The statisticians said that the main reason for the price increase was higher electricity costs. In a year-on-year comparison, electricity prices rose by 5.1 percent in January. By contrast, petroleum products were cheaper than a year earlier. The producer prices flow into the consumer prices with a time delay, on which the European Central Bank (ECB) bases its monetary policy.