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.