German Producer Prices +3.7% Y/Y in March, Fastest Increase Since November 2011

20 April, 2021

By David Barwick – FRANKFURT (Econostream) – Producer prices in Germany rose by 3.7% on the year in March, the highest annual rate of increase since 4.6% in November 2011, the German Federal Statistical Office announced on Monday.

The acceleration was the tenth in a row and represented a significant increase from February’s 1.9% on the year.

On the month, producer prices in March were up 0.9%, versus 0.7% in February.

With energy prices as a whole up in March by 8.0% on the year and 0.9% on the month, producer prices ex-energy were up 2.4% on the year (after 1.4% in February).

According to the Statistical Office, the annual rate of increase of energy prices in March was mainly due to higher electricity prices, up 9.6%, as well as a tax on carbon dioxide emissions. The Statistical Office cited an example of natural gas sold to industrial consumers that was 7.0% more expensive without the CO2 tax and 18.2% more expensive with it.