Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

German wholesale prices see record jump as raw material costs soar

Published 12/13/2021, 04:18 AM
Updated 12/13/2021, 04:21 AM
© Reuters. FILE PHOTO: Shoppers wear mask and fill Cologne's main shopping street Hohe Strasse (High Street) in Cologne, Germany, 12, December, 2020.  REUTERS/Wolfgang Rattay/File Photo

BERLIN (Reuters) - German wholesale prices rose by 16.6% on the year in November, official data showed on Monday, recording their biggest annual rise since data collection for the measure began in 1962 and suggesting higher consumer prices may follow.

The price measure is widely considered an indicator of future inflationary tendencies as wholesale trade is the hinge between manufacturers and end-customers.

"The high rates of change for wholesale prices in annual comparison derive from increased prices for raw materials and intermediate products," the Federal Statistics Office said in a statement.

The largest impact on the annual measure came from increased prices for mineral oil products, which rose 62.4% on the year.

Supply chain bottlenecks have put upwards pressure on the cost of intermediate products.

More than half of German companies doing business abroad are suffering severe problems in their supply chains or logistics, pushing them to diversify suppliers, shorten delivery routes and even relocate their own production, a survey showed last month.

German consumer prices, harmonised to make them comparable with inflation data from other European Union countries, rose 6.0% year-on-year in November, increasing pressure on the European Central Bank to react.

Germany's new chancellor, Olaf Scholz, said last month - just before taking office - that very high inflation rates had to be watched closely.

On the month, wholesale prices rose 1.3% in November.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.