German Producer Prices +1.9% Y/Y in February, Fastest Increase Since May 2019
19 March, 2021
By David Barwick – FRANKFURT (Econostream) – Producer prices in Germany rose by 1.9% on the year in February, the highest annual rate of increase since the same result in May 2019, the German Federal Statistical Office announced on Friday.The increase was the ninth in a row and represented a significant increase from January’s +0.9% on the year.
On the month, producer prices in February were up 0.7%, versus +1.4% in January.
With energy prices as a whole up in February by 3.7% on the year and 1.3% on the month, producer prices ex-energy were up 1.4% on the year. That was the fastest increase since +1.6% in December 2018.
According to the Statistical Office, the annual rate of increase of energy prices in February was mainly due to higher electricity prices, up 6.8%, as well as a tax on carbon dioxide emissions. The Statistical Office cited an example of natural gas sold to industrial consumers that was 5.3% more expensive without the CO2 tax and 16.1% more expensive with it.